2025–26 Tax Year · NLW Updated April 2025
Hourly to Annual
Salary Calculator UK
Enter your hourly rate and hours per week. See your gross annual salary, monthly pay, and take-home after tax and NI.
Enter your hourly rate and hours per week. See your gross annual salary, monthly pay, and take-home after tax and NI.
| Hourly Rate | Annual Gross | Monthly Gross | Take-Home (est.) |
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Converting an hourly rate to an annual salary in the UK uses a simple formula: hourly rate × hours per week × weeks per year. The standard UK full-time working week is 37.5 hours, and most salaried workers are paid for all 52 weeks per year (including statutory annual leave). This gives 1,950 hours per year for a full-time worker.
Most UK office jobs use a 37.5-hour contract (9am–5:30pm with a 30-minute lunch break, Monday to Friday). Some roles use a 40-hour week. Part-time workers typically work 16–30 hours. Always use your actual contracted hours — including overtime in the base calculation will overstate your annualised salary.
UK workers are legally entitled to at least 28 days paid annual leave per year (5.6 weeks), which includes bank holidays. For employees paid an annual salary, this is built into your pay — you continue to earn during holidays. If you are paid hourly and only receive pay for hours actually worked (common in agency or zero-hours arrangements), deduct your holiday weeks from 52 when annualising your rate.
The National Living Wage (NLW) for workers aged 21 and over is £12.21 per hour from April 2025 — equivalent to £23,810 per year at 37.5 hours. The National Minimum Wage for workers aged 18–20 is £10.00 per hour (£19,500/year). Employers must pay at least these rates; paying less is a criminal offence.
HMRC taxes you on your annualised earnings, regardless of whether you are paid hourly or salaried. Once your hourly pay is converted to an annual figure, the standard income tax bands apply. According to HMRC income tax rates 2025–26, the Personal Allowance is £12,570, the Basic Rate is 20% (up to £50,270), and the Higher Rate is 40% (up to £125,140).
National Insurance is calculated on the same earnings basis. Employees pay 8% NI on earnings between £12,570 and £50,270 per year, and 2% above £50,270. Part-time workers earning below £12,570 per year pay no income tax and no NI — a significant consideration for those working reduced hours.
Contractors and freelancers often work to a day rate rather than an hourly rate. To convert a day rate to an hourly rate, divide by the number of billable hours in your day (typically 7–8). To convert to annual, multiply your day rate by the number of days you work per year. A typical contractor working 220 days per year at £350/day earns £77,000 gross annually before IR35 considerations.