Paid overtime less lucrative for workers putting in extra hours
Only a minority of workers are receiving time-and-a-half for paid overtime, says the Resolution Foundation.
Paid overtime is far less lucrative than it used to be, with only a minority of workers receiving the traditional time-and-a-half premium, a new report reveals.
One in 10 workers did paid overtime in the past year, but only a fifth got at least time-and-a-half for the extra hours, said the Resolution Foundation.
Overtime is more common in transport, affecting almost one in five workers, and manufacturing (14%), compared with just 4% in teaching, the study found.
More than half of retail workers receive no premium for overtime, said the report.
Conor D’Arcy, senior policy analyst at the Resolution Foundation, said: “Paid overtime is a massive workplace issue for millions of workers, and yet it enjoys a fraction of the attention given to more niche areas like the gig economy.
“This is likely due to it being a bigger deal outside London, and in more traditional sectors like manufacturing and agriculture.
“While paid overtime is popular, it’s far less lucrative than it used to be. Only a minority of workers still enjoy the traditional ‘time-and-a-half’ pay premium.”