Common Myths About Hourly Pay and Overtime

When you hear about a figure like Diego Simeone’s salary, it’s easy to assume that all high earners are on a fixed annual package with no overtime worries. In reality, the world of hourly pay and overtime is full of misconceptions that affect millions of UK workers. Let’s separate fact from fiction using the latest official data.

Myth 1: ‘Hourly workers don’t get overtime’

Many people think that if you’re paid by the hour, you automatically qualify for overtime premiums. In fact, overtime entitlement depends on your employment contract. The National Minimum Wage and National Living Wage set a floor, but they don’t require employers to pay extra for extra hours. According to the ONS Annual Survey of Hours and Earnings (ASHE) for 2025, the median hourly pay for full-time employees was £19.67, while the National Living Wage for those aged 21+ was £12.21. Low-paid jobs (below two-thirds of median hourly pay) made up just 2.5% of all employee jobs – the lowest since records began in 1997. That doesn’t mean overtime is guaranteed; many low-paid workers still don’t receive a premium for additional hours.

Myth 2: ‘Overtime is always time-and-a-half’

There is no UK law that says overtime must be paid at 1.5 times your normal rate. The Working Time Regulations 1998 only cap average weekly hours at 48 (unless you opt out). Your contract may specify a higher rate, but many employers pay basic rate or offer time off in lieu. For example, NHS staff on Agenda for Change contracts have clear overtime rules, but even there, rates vary by band and day of the week. The NHS Employers pay scales for 2026/27 show Band 5 entry at £19.68 per hour, but overtime may be paid at plain time or a premium depending on local agreements.

Myth 3: ‘Salaried employees never work overtime’

It’s common to assume that if you’re on a salary, you don’t get paid extra for extra hours. In many professional roles – including management, teaching, and some NHS positions – the salary is intended to cover all hours worked. However, some salaried contracts do include overtime provisions. The key is to read your contract. Even high-profile roles like Diego Simeone’s salary (as a football manager) are typically all-inclusive, meaning no additional overtime pay. But for most UK employees, the line between hourly and salaried is not as clear-cut as it seems.

Myth 4: ‘Converting hourly to annual is straightforward’

A common rule of thumb is: annual salary ≈ hourly rate × hours per week × 52. For a full-time worker on 37.5 hours per week at the 2025 National Living Wage of £12.21, that gives £23,809.50. But this assumes no unpaid overtime, no breaks, and consistent hours. The ONS ASHE 2025 reports median full-time gross annual earnings of £39,039 – that’s about £20.02 per hour at 37.5 hours. However, many jobs include paid overtime, bonuses, or London weighting. The salary data page on this site breaks down typical earnings by occupation and region.

What Diego Simeone’s Salary Really Tells Us

While we don’t have an official UK figure for Diego Simeone’s salary, his reported earnings (often in the millions) highlight a stark contrast with typical UK hourly pay. His role is salaried, likely with no overtime, and his income is far above the median. But the myths around hourly pay and overtime affect everyone – from the lowest-paid to the highest. Understanding your own contract and using tools like the hourly calculator can help you see where you stand.

Key Takeaways from Official Data

• Median full-time hourly pay (2025): £19.67 (ONS ASHE).
• National Living Wage (21+, 2025): £12.21 per hour.
• NHS Band 5 entry (2026/27): £19.68 per hour.
• Low-paid jobs: 2.5% of all employee jobs in 2025.

Always check your contract for overtime rules, and remember that converting hourly to annual is only an estimate. For more guidance, visit our salary articles or topics page.