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Overtime Calculator 2026

What's left of your overtime after tax? Calculate hourly wage, surcharge and payout — including Germany's planned tax exemption for overtime surcharges.

100% freeNo data storedUpdated for 2026

Planned tax exemption — not yet in force

Tax-free overtime surcharges are so far only a draft bill (Labour Market Strengthening Act of 12 Sept 2025) and have not been passed. The "planned law" shows what the reform would bring — the "current" calculation applies today.

Salary & Working Hours

€
h
h

Overtime & Tax

%
Net (planned law)

€129.99

per month · €1,559.88 per year

Net (current law)

€112.32

Net (planned law)

€129.99

Base hourly wage

€20.19

Overtime gross

€252.40

per month

Effective net hourly wage

€13.00

per overtime hour

Your tax gain from the reform

Tax gain per month

€17.67

Tax gain per year

€212.02

Gross-to-net split compared

Is the extra work worth it?

This is what you keep net per overtime hour worked — compared to your regular hourly wage.

Regular base wage

€20.19

Effective net hourly wage

€13.00

Breakdown of your overtime

Current lawPlanned law
Base pay€201.92€201.92
Surcharge€50.48€50.48
of which tax-free (planned)—€50.48
Total gross€252.40€252.40
− Income tax€88.34€70.67
− Social contributions (employee)€51.74€51.74
Net payout€112.32€129.99

Assumptions & notes

  • Social contributions (health, pension, unemployment and long-term care insurance) are estimated flat at around 20.5% employee share and stay the same in both scenarios — the planned reform only affects income tax.
  • The planned tax-free surcharge is capped at 25% of the base wage. A 25% surcharge is therefore fully tax-free; of a 50% surcharge, half remains taxable.
  • Under the draft, only surcharges for hours above a collectively agreed or contractual full-time week of at least 34 hours are tax-free. Below 34 weekly hours the advantage does not apply.
  • The marginal tax rate is an estimate. The exact tax depends on your individual assessment. This calculation is non-binding and does not replace tax advice.

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Guide: Overtime & Payout

Everything about surcharges, tax, expiry and your rights

Getting Overtime Paid Out in 2026: Tax, Surcharges and the Planned ExemptionFeatured

Getting Overtime Paid Out in 2026: Tax, Surcharges and the Planned Exemption

The complete guide to overtime payout: how surcharges are calculated, what stays net, and what the planned tax exemption for surcharges would bring.

2026-07-0212 min read
Does Overtime Expire? Your Rights to Payout and Time Off

Does Overtime Expire? Your Rights to Payout and Time Off

When does overtime expire, when must it be paid out, and how do you document extra work correctly? Deadlines, exclusion clauses and limitation periods explained.

2026-07-028 min read
Overtime: Payout or Time Off? What Really Pays in 2026

Overtime: Payout or Time Off? What Really Pays in 2026

Payout brings money, time off brings rest — but what pays off financially? The comparison including tax, surcharge and the planned reform.

2026-07-027 min read
Overtime in Part-Time Work: Why the Planned Exemption Often Doesn't Apply

Overtime in Part-Time Work: Why the Planned Exemption Often Doesn't Apply

Special rules apply to part-timers: the planned tax exemption requires a full-time week of at least 34 hours. What this means for your extra work.

2026-07-026 min read

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Frequently Asked Questions

Not yet. The plan is to exempt only the overtime surcharges (not the base pay) from income tax — capped at 25% of the base wage. It is based on the draft Labour Market Strengthening Act of 12 September 2025. As of July 2026 the law has not been passed. Until it comes into force, overtime including surcharge is taxed normally.

Divide your monthly gross salary by your monthly working hours. These are your weekly hours × 4.33 (average weeks per month). At €3,500 and 40 weekly hours that is roughly 173 hours per month, i.e. about €20.19 per hour. The surcharge (e.g. 25%) is added on top of this base wage. Our calculator does this automatically.

There is no statutory right to an overtime surcharge. Whether and how much is paid depends on the employment, collective or works agreement. 25% is common for regular overtime; for night, Sunday or holiday work higher rates (e.g. 50%) are often agreed. Night, Sunday and holiday surcharges are already tax-privileged today — the planned reform additionally covers pure overtime surcharges.

Yes. The planned exemption explicitly concerns only income tax, not social insurance. Health, pension, unemployment and long-term care contributions still apply to base pay and surcharge — as long as you are below the relevant contribution ceilings. That is why the net advantage of the reform is smaller than "tax-free" might first suggest.

That depends on the contract. Ordered or approved overtime must be compensated — either by payout or time off in lieu. Blanket clauses such as "overtime is covered by the salary" are only valid if a scope is recognisable; unlimited settlement clauses are usually void. For higher salaries, settlement may be more permissible.

Financially, payout including surcharge is attractive — especially if the planned tax exemption arrives. Time off in lieu, on the other hand, is granted 1:1 in time (the surcharge often does not count here) and is tax-free because no money is paid out. Those who need rest are better off with time; those who need money, with payout. Our calculator shows you the net payout amount.

Under the draft, only surcharges for hours above a collectively agreed or contractual full-time week of at least 34 hours are tax-free. Someone working 30 hours who does five extra hours is still below the full-time reference — the planned exemption does not apply to those hours. Only hours beyond the full-time threshold would be favoured. This is intended to prevent the benefit from applying to minor extra work.

The advantage equals the tax-free surcharge multiplied by your marginal tax rate. Example: 10 overtime hours with a 25% surcharge at €20 base wage give €50 surcharge per month. At a 35% marginal rate you save around €17.50 income tax per month, i.e. about €210 per year. The higher your tax rate and surcharge (up to the 25% cap), the greater the advantage. Calculate your personal case above.