How do I calculate my annual salary from my hourly rate?

The standard formula is: Hourly Rate × Weekly Hours × 52. For example, £15/hr × 37.5 hours × 52 weeks = £29,250 per year.

What is the annual salary for £12.21 per hour in 2026?

Based on a standard 37.5-hour week, £12.21 per hour equates to approximately £23,810 per year before tax.

Does my hourly rate include holiday pay?

Typically, no. Statutory holiday pay is accrued on top of your worked hours, often calculated as 12.07% of your hourly pay if you are on a casual contract.

How much tax will I pay on £15 an hour?

On a £29,250 annual salary (£15/hr full-time), you will pay approximately £3,336 in Income Tax and £1,334 in National Insurance, leaving a take-home of roughly £23,515 (estimates vary with pension contributions).

How is overtime calculated on an hourly wage?

Overtime is often paid at a premium, such as 'time and a half' (1.5x your base rate) or 'double time'. Check your employment contract for specific overtime policies.

What is the 2026 National Living Wage?

For 2026, the National Living Wage is projected to be around £12.21 or higher, depending on government confirmations later in the fiscal calendar.

How do 4-week months affect my calculation?

Most months have more than 4 weeks (avg 4.33). To get a monthly average, multiply your weekly pay by 52 and divide by 12, rather than just multiplying by 4.

Hourly to Annual Salary UK

Quick Converter

Hourly Rate (£)

Hours per Week

Your Results (Estimated)

Weekly Gross: £562.50

Monthly Gross: £2,437.50

Annual Gross: £29,250.00

Annual Net (Take Home): £23,515.00

Monthly Net: £1,959.58

Calculations based on standard 2025/2026 tax codes (1257L) and Class 1 NI.

Calculating Take-Home Pay from an Hourly Rate

Many UK workers are paid hourly rather than on an annual salary. Understanding how your hourly rate translates to take-home pay after tax, National Insurance, and other deductions helps you budget effectively and evaluate job offers.

From Hourly Rate to Annual Salary

To convert an hourly rate to an annual salary, multiply the rate by your weekly hours, then by 52 weeks. For example, £15 per hour at 37.5 hours per week equals £29,250 annually (£15 x 37.5 x 52). This annual figure is then used to calculate your tax and National Insurance contributions.

Key Deductions

Income Tax: You pay no tax on the first £12,570 (personal allowance), 20 percent on earnings up to £50,270, and 40 percent above that threshold. National Insurance: Employees pay 8 percent on earnings between £12,570 and £50,270, then 2 percent above that. Pension: Auto-enrolment requires minimum contributions of 5 percent of qualifying earnings.

National Minimum and Living Wage

As of April 2025, the National Living Wage for workers aged 21 and over is £12.21 per hour. Workers aged 18-20 receive £10.00, while apprentices are entitled to at least £7.55 per hour. These rates are reviewed annually by the Low Pay Commission.

This calculator converts your hourly rate to annual, monthly, weekly, and daily take-home pay, accounting for all standard deductions.

Official Sources

Data verified against official UK government sources. Last checked April 2026.

About the Take-Home Pay Calculator (Hourly)

Convert your hourly rate to annual take-home pay, or calculate weekly and monthly net pay after UK income tax, National Insurance and student loan deductions.

Formula: Annual gross = Hourly Rate × Hours per Week × 52 weeks; then deduct Income Tax + NI
UK minimum wage 2025/26: £12.21/hour (21+), £10.00 (18-20), £7.55 (under 18)

Frequently Asked Questions

How do I convert hourly rate to annual salary?

Multiply your hourly rate by your weekly hours, then by 52. Example: £15/hour × 37.5 hours × 52 = £29,250 gross annual salary.

What is the UK national living wage?

From April 2025, the National Living Wage is £12.21/hour for workers aged 21+. The National Minimum Wage for ages 18-20 is £10.00/hour.

How much tax do I pay on hourly work?

You pay income tax above the £12,570 personal allowance (20% basic rate up to £50,270). Employee NI is 8% on earnings £12,570-£50,270 and 2% above.

Do zero-hours contract workers pay tax?

Yes — all workers pay income tax and NI on their earnings, regardless of contract type. Zero-hours workers are taxed in the same way as regular employees.