Is 40k a Good Salary UK? Understanding the Numbers

When you ask “is 40k a good salary uk”, the answer depends on your circumstances – but the latest official data gives a clear starting point. The Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE) for April 2025 shows that the median gross annual earnings for full-time employees were £39,039. So £40,000 sits just above the middle of the pay distribution. In hourly terms, that median translates to roughly £19.67 per hour (excluding overtime) for a full-time worker.

Converting £40,000 to an Hourly Rate

To see what £40,000 means as an hourly wage, we use the standard conversion: annual salary ÷ (hours per week × 52 weeks). Assuming a typical full-time week of 37.5 hours (common in many office and public sector roles):

• Gross hourly rate: £40,000 ÷ (37.5 × 52) = £20.51 per hour
• Net hourly take-home (after tax and NI): approximately £16.57 per hour (based on 2026/27 tax rates for England/Wales)

If you work a 40-hour week, the gross hourly rate drops to about £19.23. Always check your contracted hours – part-time workers on, say, 20 hours per week at £20.51/hr would earn only £20,800 annually, well below the full-time median.

How £40k Compares to National Living Wage and Other Benchmarks

The National Living Wage (for employees aged 21 and over) was £12.21 per hour from April 2025. At 37.5 hours/week, that gives an annual full-time equivalent of roughly £23,809. The government has announced further increases, with the rate rising to £12.71 in April 2026 (as used in our salary data tables). So £40,000 is significantly above the legal minimum – about 68% higher than the NLW annual equivalent.

For context, the ONS also reports median weekly earnings for full-time employees at £766.60 (April 2025). That works out to about £39,863 annually (52 weeks), very close to the £39,039 annual figure (the slight difference is due to how ASHE treats employees with less than a year in post).

Part-Time vs Full-Time: Why Hours Matter

One of the biggest factors in judging “is 40k a good salary uk” is whether you work full-time or part-time. A part-time worker earning £40,000 would have a very high hourly rate – for example, 20 hours/week at £38.46/hr – but that’s rare. Most part-time roles pay pro-rata. If you’re comparing job offers, always convert to an hourly rate using your actual weekly hours. Our Hourly to Salary tool lets you input your own hours to get an accurate annual figure.

London Weighting and Regional Differences

The ONS data is UK-wide. In London, median full-time earnings are typically 15–20% higher than the national figure. A £40,000 salary in London might feel equivalent to £32,000–£34,000 elsewhere after accounting for housing and travel costs. Many employers in the capital add a “London weighting” – often 10–20% on top of a base salary. If you’re considering a role in London, factor in whether the salary includes such an allowance.

After-Tax Take-Home Pay

Using standard PAYE deductions for 2026/27 (tax code 1257L, England/Wales/NI), a £40,000 salary leaves you with:

• Annual net: £32,320
• Monthly net: £2,693
• Weekly net: £622
• Hourly net (37.5h week): £16.57

These figures assume no student loan repayments, pension contributions, or salary sacrifice. Your actual take-home may differ if you have those deductions.

Verdict: Is 40k a Good Salary UK?

For a single person outside London, £40,000 is a comfortable middle-income salary – above the national median and well above the minimum wage. It allows for reasonable savings and lifestyle, especially if you live in a lower-cost area. In London or other expensive cities, it’s still a respectable starting point but may require careful budgeting. Ultimately, “good” depends on your outgoings, career stage, and personal goals. Use the benchmarks above to see where £40k sits in the wider UK pay landscape.

For more detailed comparisons, explore our salary articles covering regional pay differences and industry-specific guides.