Top Strategies for Maximizing Your Income from Shift Work

Across the UK, approximately four million people are shift workers, which represents around 14% of the total workforce.

In this article we’ll dive into shift work, its workers and the 24/7 schedule that provides a host of opportunities for maximising earning potential. It’s shift workers who keep our key services running around the clock and for this reason they’re a fundamental part of the UK and global economy.

What is Shift Work?

Shift work is a work schedule performed in rotations amongst employees, and it typically occurs outside of the traditional 9 am to 5 pm working hours.

The Health and Social Care Information Centre for the UK defines shift work as main employment that occurs predominantly outside of 7 am to 7 pm.

An example of a shift worker is an employee who works during the night to fulfil their duties and hands over to a colleague in the early hours of the morning – this is known as a night shift. Other types of shift work can include the day shift, which is the most similar to typical working hours in the UK, and the afternoon shift which begins in the afternoon and concludes late in the evening.

How to Maximise Your Earnings as a Shift Worker

Shift work takes various forms and its unusual hours can make it difficult for shift workers to track and maximise their earnings traditionally. It’s vital to take a moment to consider your shift work schedule and identify any opportunities to implement a basic strategy that ensures you aren’t getting sold short.

Let’s take a look at some valuable strategies to help you make the most of your shift work.

Negotiate Shift Work Differentials

Shift differentials are higher hourly pay rates in exchange for working undesirable hours, such as nights, weekends, or holidays. It is very common for employers to offer shift differentials to incentivize employees to work the less attractive shifts, and in the UK the increase in pay rates can be anywhere from 10% to in some cases 100%, more commonly known as double time.

So, when negotiating your working contract, be sure to negotiate differentials where possible. Essentially the more undesirable the hours you are willing to work, the more you will earn. This doesn’t mean you have to work every night shift, but instead, consider giving up a Saturday once a month to take advantage of shift differentials offered by your employer.

Optimise Shift Work Overtime Opportunities

Overtime is time worked that exceeds your scheduled working hours and is a term synonymous with the corresponding compensation provided to shift workers. Though it might seem similar to the previous point, it is vital that you consider working overtime where possible.

In the UK, the rate of pay for overtime work is commonly time and a half, which is 1.5 times your normal hourly pay.

Employers in the UK are not actually required by law to pay employees for any hours worked in overtime, so always make sure you have a prior agreement before you undertake any extra hours. Furthermore, if you work overtime, it is paramount to clearly record additional hours worked to receive the appropriate compensation and thus maximise your earning potential.

Take Advantage of Shift Work Tax Relief

Tax relief is essentially any reduction in the proportion of your income paid as tax and can be a viable option for shift workers in the UK seeking to maximise their monthly earnings. If you’re a shift worker, it is possible to claim back any expenses incurred as part of your job from your tax contribution.

The UK ruling is strict, so this strategy can only be used for compulsory costs and not for those that can be avoided. The most common example of an expense valid for tax relief is the purchase of equipment or clothing for work, for example if your role requires specialist footwear or protective equipment.

To claim any expenses, you must be earning more than your tax-free allowance of £12,570 a year, and submit a P87 form online via the UK Government Gateway.

Final Thoughts

As explained, these opportunities will enable shift workers across the UK to explore new opportunities and maximise their monthly earnings. By negotiating shift differentials, working overtime where possible, and exploring the various tax relief options available from the UK Government, anyone undertaking shift work will be able to boost their income.

Remember to always be on the lookout for new opportunities to maximise your earnings, and good luck on your journey to financial empowerment!