Comparing Hourly and Salaried Jobs: Use My Salary Calculator

When you're weighing up a job offer, it's not always obvious whether an hourly rate or an annual salary is the better deal. A role might advertise £15 per hour while another offers £30,000 per year – but which one leaves you better off after tax and National Insurance? That's where my salary calculator comes in. It lets you convert between hourly and annual figures quickly, using the standard UK conversion of hours per week multiplied by 52 weeks.

The Standard Conversion Rule

The basic formula is straightforward: annual salary = hourly rate × contracted hours per week × 52. Most employers and HMRC use this 52-week year for PAYE calculations. A small number of sites use 52.14 weeks (365.25 ÷ 7), but the difference is tiny – less than £40 gross per year on a full-time minimum wage contract. For example, at the National Living Wage of £12.71 per hour for someone aged 21 or over, working 37.5 hours per week, the annual gross pay is £24,784.50. After income tax and National Insurance, the monthly take-home is around £1,780 (based on 2026/27 rates with the standard 1257L tax code and no pension or student loan deductions).

To go the other way, divide the annual salary by (hours per week × 52). A £30,000 salary at 37.5 hours per week gives an hourly rate of £15.38; at 40 hours per week it drops to £14.42. This is why my salary calculator asks you to enter your typical weekly hours – the answer changes depending on your contract.

UK Wage Benchmarks from Official Sources

The Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE) provides the most reliable picture of UK pay. For April 2025, the median gross annual earnings for full-time employees were £39,039. That works out to roughly £20.02 per hour at 37.5 hours per week. Median weekly earnings were £766.60, and median hourly earnings (excluding overtime) were £19.67. These figures are provisional but give a solid benchmark for what the typical full-time worker earns.

For lower-paid roles, the government sets legal minimums. The National Living Wage for workers aged 21 and over is £12.71 per hour from April 2026 (up from £12.21 in 2025). For 18–20 year olds it is £10.85, and for 16–17 year olds and apprentices it is £8.00 per hour. The voluntary Real Living Wage, calculated by the Living Wage Foundation, is higher: £13.45 per hour UK-wide and £14.80 in London for 2025-26.

Public sector pay scales also provide useful reference points. The NHS pay scales for 2026/27, effective from 1 April 2026, show Band 1 at £12.92 per hour (closed to new entrants), with higher cost area supplements (HCAS) for inner and outer London. Band 2 and above have higher rates. These scales are updated annually and are a good guide if you're considering healthcare roles.

Why Hours Assumptions Matter

When using my salary calculator, the number of contracted hours per week is the single most important variable. A 37.5-hour week is common in many professional and public sector roles, but 40 hours is standard in retail, hospitality, and some trades. Part-time workers on 20 or 30 hours per week will see very different annual equivalents. Always check your contract for the exact weekly hours, including any unpaid breaks.

Overtime is another factor. Hourly rates often exclude overtime pay, which might be time-and-a-half or double time. Salaried roles sometimes include overtime in the annual figure, but not always. If you regularly work extra hours, the effective hourly rate can be much lower than the advertised one. My salary calculator can't predict overtime, but it can help you compare the base rates.

London Weighting and Location Adjustments

Pay varies significantly by region. The ONS data shows that London has the highest median earnings, but the cost of living is also higher. Many employers add a London weighting or a location allowance. For example, NHS HCAS adds between 5% and 20% of basic salary depending on the zone. If you're comparing a London job with one elsewhere, adjust the hourly rate or salary accordingly. My salary calculator doesn't automatically include location adjustments, but you can manually add them to the gross figure.

Using My Salary Calculator to Compare Offers

Let's say you have two offers: one is £15 per hour at 37.5 hours per week, the other is £30,000 per year at 40 hours per week. Using the calculator:

• Offer A: £15 × 37.5 × 52 = £29,250 gross per year. After tax and NI (2026/27, England), take-home is about £2,165 per month.
• Offer B: £30,000 ÷ (40 × 52) = £14.42 per hour. Take-home is about £1,983 per month.

Offer A gives a higher hourly rate and more monthly take-home, despite the lower annual gross. But you also need to consider paid leave, pension contributions, and job security. Salaried roles often include sick pay and a defined holiday entitlement, while hourly workers may have less stability.

For more detailed comparisons, visit our [Hourly to Salary](/