Hourly Rate Calculator UK | Salary to Hourly Wage Converter 2025/26
Free UK Hourly Rate Calculator 2025/26. Convert your annual, monthly or weekly salary to an hourly rate. Compare with National Living Wage and UK median pay.
Last updated: February 2026
Hourly Rate Calculator
Convert your annual, monthly or weekly salary into an hourly rate. Compare your pay with UK National Living Wage and median hourly earnings.
Your Hourly Rate
How Your Rate Compares
Understanding Hourly Rates in the UK
Knowing your hourly rate is one of the most important aspects of managing your finances. Whether you are a salaried employee wanting to understand your true earnings per hour, a freelancer setting your rates, or a job seeker comparing offers, converting your salary into an hourly figure provides a clear and universal way to assess the value of your time.
In the United Kingdom, the standard full-time working week is typically 37.5 hours, though this can vary between 35 and 40 hours depending on the industry, employer and contract. The most common calculation assumes 52 weeks per year for salaried employees, since holiday pay is included in the annual salary figure. For contractors and freelancers who are not paid during holidays, the effective number of working weeks is lower, usually between 46 and 48 weeks after accounting for statutory holiday entitlement and bank holidays.
Understanding your hourly rate helps you make informed decisions about overtime, side work, career changes and whether a job offer truly represents an improvement over your current situation. Two roles with identical annual salaries can have vastly different hourly rates if one requires significantly more hours per week.
Why Your Hourly Rate Matters
Your hourly rate is the great equaliser when comparing different types of employment. Consider these scenarios:
- Job A: £35,000 annual salary, 37.5 hours per week = £17.95/hour
- Job B: £38,000 annual salary, 45 hours per week = £16.24/hour
Despite Job B paying £3,000 more annually, you would actually earn £1.71 less per hour. This is why looking beyond the headline salary figure is essential. When you factor in commuting time and costs, the difference can be even more significant.
National Living Wage & National Minimum Wage 2025/26
The UK government sets minimum hourly pay rates that all employers must legally comply with. These rates are reviewed annually and typically increase each April. There are two distinct frameworks: the National Living Wage (NLW), which applies to workers aged 21 and over, and the National Minimum Wage (NMW), which covers younger workers and apprentices.
| Category | Age Group | Hourly Rate (2025/26) | Annual (37.5h/wk) |
|---|---|---|---|
| National Living Wage | 21 and over | £12.21 | £23,809.50 |
| National Minimum Wage | 18 to 20 | £11.44 | £22,308.00 |
| National Minimum Wage | Under 18 | £8.60 | £16,770.00 |
| Apprentice Rate | Apprentices | £7.55 | £14,722.50 |
The apprentice rate applies to apprentices under 19, or those aged 19 and over who are in the first year of their apprenticeship. After the first year, apprentices aged 19 and over are entitled to the minimum wage rate for their age group.
Real Living Wage vs National Living Wage
It is important not to confuse the government's National Living Wage with the real Living Wage set by the Living Wage Foundation. The real Living Wage is a voluntary rate calculated based on the actual cost of living:
- Real Living Wage (UK): £12.60 per hour
- London Living Wage: £13.85 per hour
Over 14,000 UK employers voluntarily pay the real Living Wage, including many well-known brands. While not legally required, it signals a commitment to fair pay and is often associated with better employee retention and productivity.
How to Calculate Your Hourly Rate from Salary
Converting your salary to an hourly rate is straightforward once you know the formula. The key variables are your salary amount, the number of hours you work per week, and the number of weeks you work per year.
Formula: Annual Salary to Hourly Rate
Worked Example 1: Standard Full-Time Employee
Sarah earns £30,000 per year and works 37.5 hours per week. As a salaried employee, she is paid for 52 weeks (holidays included):
- Hourly Rate = £30,000 ÷ (52 × 37.5)
- Hourly Rate = £30,000 ÷ 1,950
- Hourly Rate = £15.38
Worked Example 2: Freelancer (Excluding Holidays)
Tom earns the equivalent of £40,000 per year but as a freelancer, he does not get paid holidays. He takes 5.6 weeks off (statutory entitlement) and works 40 hours per week:
- Working weeks = 52 - 5.6 = 46.4 weeks
- Hourly Rate = £40,000 ÷ (46.4 × 40)
- Hourly Rate = £40,000 ÷ 1,856
- Hourly Rate = £21.55
Formula: Monthly Salary to Hourly Rate
Worked Example 3: From Monthly Pay
Emily receives £2,500 per month and works 37.5 hours per week:
- Annual equivalent = £2,500 × 12 = £30,000
- Hourly Rate = £30,000 ÷ (52 × 37.5) = £30,000 ÷ 1,950
- Hourly Rate = £15.38
Formula: Weekly Salary to Hourly Rate
Median Hourly Pay by Sector in the UK
Hourly pay varies significantly across different industries and sectors in the UK. The following table shows approximate median hourly earnings based on the latest ONS Annual Survey of Hours and Earnings (ASHE) data. Use these figures to benchmark your own hourly rate against your industry.
| Sector / Industry | Median Hourly Pay | vs UK Median |
|---|---|---|
| Finance & Insurance | £23.50 | +52% |
| Information & Technology | £22.80 | +48% |
| Professional & Scientific | £21.20 | +37% |
| Mining & Quarrying | £20.50 | +33% |
| Public Administration | £18.40 | +19% |
| Education | £17.60 | +14% |
| Health & Social Work | £16.20 | +5% |
| Manufacturing | £15.80 | +2% |
| UK Median (All Sectors) | £15.45 | Baseline |
| Construction | £15.30 | -1% |
| Transport & Storage | £14.60 | -6% |
| Wholesale & Retail | £12.50 | -19% |
| Arts & Entertainment | £12.20 | -21% |
| Accommodation & Food | £11.50 | -26% |
Tips for Negotiating Your Hourly Rate
Research Market Rates
Before any negotiation, research what your role pays in your region and sector. Use the ONS ASHE data, Glassdoor, Reed and Indeed salary tools to build a clear picture of the going rate. Knowing the market gives you confidence and credibility.
Calculate Your True Hourly Value
Factor in unpaid overtime, commuting time and expenses when assessing your current rate. If you regularly work 45 hours but are paid for 37.5, your effective hourly rate is significantly lower than it appears on paper.
Quantify Your Contributions
Prepare specific examples of how you have added value: revenue generated, costs saved, projects delivered, or improvements made. Concrete numbers are far more persuasive than vague claims about performance.
Consider the Full Package
Hourly rate is not everything. Pension contributions, flexible working, health insurance, bonus potential and training budgets all have monetary value. A slightly lower rate with excellent benefits may be worth more overall.
Time Your Request Wisely
The best times to negotiate are during annual reviews, after completing a major project, when taking on new responsibilities, or when you have a competing offer. Avoid asking during company difficulties or restructuring.
For Freelancers: Price for Profit
As a freelancer, your hourly rate must cover not just your desired salary, but also tax, pension, insurance, equipment, software, sick days, holiday days and admin time. A common rule is to charge 1.5-2x what an equivalent employee earns per hour.
How to Use This Calculator
Our Hourly Rate Calculator is designed to make it quick and simple to convert any UK salary into an accurate hourly rate. Here is how to get the most out of it, step by step:
- Select your input type -- Choose whether you want to enter an annual salary, monthly salary or weekly salary using the dropdown at the top of the calculator. Most people will use annual salary, which is the figure stated in your employment contract or job advert.
- Enter your salary -- Type your gross (before tax) salary into the input field. For example, if your annual salary is £30,000, enter 30000. Do not include the pound sign or commas; the calculator handles formatting automatically.
- Set your working hours per week -- The default is 37.5 hours, which is the standard full-time working week in the UK. If your contract states a different number of hours (common values are 35, 37, 38 or 40 hours), adjust this field accordingly. Getting this right is crucial because even small differences in weekly hours significantly affect your hourly rate.
- Adjust holiday entitlement if needed -- For salaried employees, leave this at "None" because your annual salary already includes holiday pay. If you are a freelancer or contractor who is not paid during holidays, select the appropriate number of holiday weeks to subtract (the UK statutory minimum is 5.6 weeks, or 28 days including bank holidays). This ensures your effective hourly rate reflects only the weeks you actually work and earn.
- Click "Calculate Hourly Rate" -- The results will appear instantly, showing your hourly rate along with daily, weekly, monthly and annual breakdowns. You will also see a visual comparison chart showing how your rate stacks up against the National Living Wage, the real Living Wage and the UK median hourly pay.
The comparison section beneath the results is particularly useful. It highlights whether your hourly rate falls above or below key national benchmarks, with colour-coded guidance explaining what your rate means in context. You can also print your results for your records using the print button provided.
Worked Examples: Salary to Hourly Rate
The following examples illustrate how different salaries, working hours and holiday arrangements translate into hourly rates. Each example uses the standard formula: Annual Salary ÷ (Working Weeks × Hours Per Week) = Hourly Rate.
Example 1: £25,000 Salary at 37.5 Hours Per Week with 28 Days Holiday
A common starting salary for many UK roles. Assuming a salaried employee with 28 days statutory holiday (paid):
- Annual Salary: £25,000
- Working Weeks: 52 (holiday pay included in salary)
- Hours Per Week: 37.5
- Total Working Hours Per Year: 52 × 37.5 = 1,950 hours
- Hourly Rate: £25,000 ÷ 1,950 = £12.82 per hour
At £12.82 per hour, this is above the National Living Wage of £12.21 but below the UK median of £15.45. For a freelancer not receiving holiday pay, the effective rate would be higher: £25,000 ÷ (46.4 × 37.5) = £25,000 ÷ 1,740 = £14.37 per hour.
Example 2: £35,000 Salary at 40 Hours Per Week
This example shows how working longer hours reduces your effective hourly rate compared to a standard 37.5-hour week:
- Annual Salary: £35,000
- Working Weeks: 52
- Hours Per Week: 40
- Total Working Hours Per Year: 52 × 40 = 2,080 hours
- Hourly Rate: £35,000 ÷ 2,080 = £16.83 per hour
Compare this with the same salary at 37.5 hours per week: £35,000 ÷ 1,950 = £17.95 per hour. That extra 2.5 hours per week reduces your hourly rate by £1.12, which adds up to over £2,100 of unpaid time across a full year. Always consider working hours when evaluating a salary offer.
Example 3: £50,000 Salary at 35 Hours Per Week
A higher salary with a shorter working week, common in professional and managerial roles:
- Annual Salary: £50,000
- Working Weeks: 52
- Hours Per Week: 35
- Total Working Hours Per Year: 52 × 35 = 1,820 hours
- Hourly Rate: £50,000 ÷ 1,820 = £27.47 per hour
At £27.47 per hour, this is 78% above the UK median hourly pay of £15.45. The shorter working week significantly boosts the hourly rate compared to the same salary at 40 hours, which would yield £50,000 ÷ 2,080 = £24.04 per hour -- a difference of £3.43 per hour.
Example 4: National Living Wage -- What Does £12.21/Hour Mean Annually?
If you earn the National Living Wage of £12.21 per hour (the 2025/26 rate for workers aged 21 and over), here is what that translates to annually:
- Hourly Rate: £12.21
- Hours Per Week: 37.5
- Working Weeks: 52
- Annual Salary: £12.21 × 37.5 × 52 = £23,809.50
At a 40-hour week, the annual equivalent rises to £12.21 × 40 × 52 = £25,396.80. It is worth noting that someone on £25,000 a year working 37.5 hours earns £12.82 per hour, which is only 61 pence above the legal minimum. If your salary is close to this threshold, it is important to ensure your employer is meeting their legal obligations, especially if you work any unpaid overtime.
Understanding Your Hourly Rate
Gross vs Net Hourly Rate
Your gross hourly rate is calculated from your salary before any deductions. This is the figure our calculator provides and the one most commonly used for comparing roles and benchmarking against national rates. Your net hourly rate (or take-home hourly rate) is what you actually receive after income tax, National Insurance contributions, pension contributions and any other deductions have been taken.
For a typical UK worker earning £30,000 per year at 37.5 hours per week, the gross hourly rate is £15.38. After standard deductions (income tax at the basic rate and employee National Insurance), the net hourly rate drops to approximately £12.50. This is a reduction of around 19%, though the exact percentage depends on your personal tax code, pension scheme and any other salary deductions. To calculate your precise net hourly rate, use our Salary Calculator to find your take-home pay, then divide that figure by your total annual working hours.
Impact of Working Hours on Your Effective Rate
The number of hours you work each week is one of the most significant factors in determining your hourly rate, yet it is often overlooked when people compare salaries. Two employees earning identical annual salaries can have very different hourly rates if they work different numbers of hours. For instance, £35,000 at 35 hours per week gives £19.23 per hour, while the same salary at 45 hours per week gives only £14.96 per hour -- a difference of over £4 per hour. This is why many professionals track their actual working hours (including unpaid overtime) to understand their true hourly earnings.
How Holiday Entitlement Affects the Calculation
In the UK, all full-time employees are entitled to a minimum of 28 days paid holiday per year (5.6 weeks), which includes bank holidays. For salaried employees, this holiday pay is built into the annual salary, so you use 52 weeks when calculating your hourly rate. However, for contractors, freelancers and zero-hours workers who are not paid during time off, the effective number of working weeks is lower. If you take the statutory 5.6 weeks of holiday, you work approximately 46.4 weeks per year, which increases your required hourly rate to maintain the same annual income. Some employers offer more generous holiday allowances of 30 to 35 days, which further reduces the effective working weeks to as few as 45.
Comparison with National Minimum Wage and Living Wage Rates
The 2025/26 National Living Wage for workers aged 21 and over is £12.21 per hour. If your calculated hourly rate falls below this threshold, and you are an employee (not genuinely self-employed), your employer may be breaking the law. It is also useful to compare your rate against the real Living Wage set by the Living Wage Foundation: £12.60 nationally and £13.85 in London. These voluntary rates are calculated based on the actual cost of living and provide a better indication of whether your pay supports a reasonable standard of living. The UK median hourly pay of approximately £15.45 serves as a useful middle-ground benchmark for assessing where you stand nationally.
UK Minimum Wage Rates 2025/26
The following table sets out the legally enforceable minimum hourly pay rates for the 2025/26 tax year, effective from April 2025. These rates are reviewed annually by the Low Pay Commission and apply to all employers across the United Kingdom.
| Age Group | Rate Type | Hourly Rate | Weekly (37.5 hrs) | Annual (37.5 hrs/52 wks) |
|---|---|---|---|---|
| 21 and over | National Living Wage | £12.21 | £457.88 | £23,809.50 |
| 18 to 20 | National Minimum Wage | £10.00 | £375.00 | £19,500.00 |
| Under 18 | National Minimum Wage | £7.55 | £283.13 | £14,722.50 |
| Apprentice | Apprentice Rate | £7.55 | £283.13 | £14,722.50 |
The apprentice rate applies to apprentices aged under 19, or those aged 19 and over who are in their first year of apprenticeship. After the first year, apprentices are entitled to the minimum wage for their age group. All rates are gross (before tax and National Insurance deductions).
If you suspect your employer is paying less than the legal minimum, you can report them confidentially to HMRC on 0300 123 1100 or through the GOV.UK pay and work rights service. Workers are also protected from being dismissed or treated unfairly for querying their pay.
Frequently Asked Questions
Divide your annual salary by the total number of working hours in a year. For a standard UK employee working 37.5 hours per week for 52 weeks, that is 1,950 hours per year. So a £30,000 salary divided by 1,950 gives you £15.38 per hour. If you work 40 hours per week, divide by 2,080 instead. Our calculator above handles all the maths for you automatically.
The National Living Wage for 2025/26 is £12.21 per hour for workers aged 21 and over. This was increased from £11.44 in the previous year. For younger workers, the rates are: £11.44 for ages 18-20, £8.60 for under 18, and £7.55 for apprentices. These rates apply from April 2025 and are the legal minimum your employer must pay.
The UK median hourly pay is approximately £15.45 according to the latest ONS Annual Survey of Hours and Earnings. The mean (average) is higher at around £18.50, as it is pulled up by high earners. Median is generally a more representative figure. Pay varies significantly by region (London is highest), sector (finance and IT pay the most), and experience level.
It depends on your employment type. If you are a salaried employee, use 52 weeks because your annual salary includes holiday pay -- you are paid the same regardless of holidays. If you are a freelancer, contractor or paid hourly without holiday pay, you should subtract your holiday weeks (the UK statutory minimum is 5.6 weeks or 28 days) to calculate your effective hourly rate. This gives a more realistic picture of what you earn for each hour actually worked.
The National Living Wage (NLW) is the higher rate that applies to workers aged 21 and over, currently £12.21 per hour. The National Minimum Wage (NMW) applies to younger workers: £11.44 for 18-20 year olds, £8.60 for under 18s, and £7.55 for apprentices. Both are legally mandatory minimum pay rates set by the government. Historically, the NLW only applied from age 25, but this was lowered to 23 in 2021 and to 21 from April 2024.
The real Living Wage is set independently by the Living Wage Foundation and is based on actual living costs, not government policy. It is currently £12.60 per hour nationally and £13.85 per hour in London. Unlike the government's NLW, it is voluntary. Over 14,000 UK employers voluntarily pay the real Living Wage. If your hourly rate is above £12.60 (or £13.85 in London), you are earning above what the Foundation considers necessary for a decent standard of living.
Multiply your hourly rate by the number of hours you work per week, then multiply by 52 (or your actual working weeks). For example, £20 per hour at 37.5 hours per week for 52 weeks: £20 × 37.5 × 52 = £39,000 annual salary. This is useful when comparing an hourly contract position with a salaried role, though remember to factor in benefits that salaried roles typically include.
A good starting point is to calculate what you would earn as an employee and multiply by 1.5 to 2 times. This accounts for the additional costs freelancers bear: no employer pension contributions, no sick pay, no holiday pay, your own equipment, insurance, accounting costs, and unbillable admin time. For instance, if a permanent role pays £20/hour, a freelancer should aim for £30-40/hour to achieve equivalent take-home pay and benefits.
For a standard UK full-time employee working 37.5 hours per week across all 52 weeks (with paid holidays included), there are 1,950 working hours in a year (52 × 37.5). If you work 40 hours per week, the total is 2,080 hours. For freelancers and contractors who subtract the 28 days (5.6 weeks) statutory holiday entitlement, the figure drops to approximately 1,740 hours at 37.5 hours per week (46.4 × 37.5) or 1,856 hours at 40 hours per week. These numbers are essential for accurately converting between annual salary and hourly rate.
The hourly rate calculated here is your gross hourly rate, meaning it is before tax, National Insurance and any other deductions. This is the standard way hourly rates are quoted in the UK, including in job adverts, employment contracts and wage comparisons. Your net (take-home) hourly rate will be lower, depending on your tax code, income level, pension contributions and student loan repayments. As a rough guide, a basic-rate taxpayer takes home approximately 70-75% of their gross pay. To find your exact net hourly rate, use our Salary Calculator to determine your annual take-home pay and then divide by your total working hours.
The UK median hourly pay is approximately £15.50 according to the latest ONS data, so any rate above this could be considered above average. However, what counts as a "good" rate depends heavily on your industry, region, experience and qualifications. In London, the median is around £18-20 per hour, while in other regions it can be £13-14. High-paying sectors such as finance, technology and professional services often see median hourly rates of £20-25 or more. A useful benchmark is to compare your hourly rate against both the national median and the median for your specific sector, which you can find in the sectoral comparison table above.
Overtime pay in the UK is not required by law (there is no statutory right to overtime pay), but many employers do offer enhanced rates for overtime hours. The most common overtime rate is 1.5 times (time and a half) your standard hourly rate. Some employers offer double time (2 times your standard rate) for weekends or bank holidays. To calculate your overtime hourly rate, first find your standard hourly rate using this calculator, then multiply by the overtime multiplier. For example, if your standard rate is £16 per hour: time and a half = £16 × 1.5 = £24 per hour; double time = £16 × 2 = £32 per hour. Check your employment contract for the specific overtime terms that apply to you.
No. The gross hourly rate calculated here is based on your salary before pension contributions are deducted. Under auto-enrolment rules in the UK, most employees contribute at least 5% of qualifying earnings to a workplace pension, with employers contributing a minimum of 3%. These deductions reduce your net take-home pay and therefore your effective net hourly rate. For example, if your gross hourly rate is £15.38 and you contribute 5% to your pension, that is 77 pence per hour going to your pension, reducing your cash hourly rate to approximately £14.61 before tax and National Insurance are also deducted. However, pension contributions are a form of deferred pay that benefits you in retirement, so they should be viewed as part of your total compensation rather than a pure cost.
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Last updated: February 2026 | Reviewed for accuracy with 2025/26 National Living Wage rates
Expert Reviewed -- This calculator is reviewed by our team of financial experts and updated regularly with the latest UK National Living Wage and National Minimum Wage rates. Last verified: February 2026.
💡 Pro Tips for Accurate Results ▼
- Use your gross (before tax) salary figure, not your take-home pay
- Standard UK full-time hours are 37.5 per week (some contracts use 35 or 40)
- Salaried employees should use 52 weeks as holiday pay is included
- Freelancers should subtract holiday weeks for an accurate effective rate
- Bookmark this page for quick future access
✅ Understanding Your Results ▼
Our Hourly Rate Calculator provides:
- Full rate breakdown showing hourly, daily, weekly, monthly and annual rates
- Visual comparison against National Living Wage and UK median pay
- Flexible input accepting annual, monthly or weekly salary
- 2025/26 updated with current UK wage rates and statutory entitlements
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