Understanding Hourly to Salary Conversion

If you're offered a job at an hourly rate or you're comparing part-time and full-time roles, knowing how to convert that figure into an annual salary is essential. The standard method used across the UK is simple: multiply your hourly rate by your contracted hours per week, then by 52 weeks. This gives your gross annual salary before any deductions.

For example, if you earn £15 per hour and work 37.5 hours a week, your annual gross pay is £15 × 37.5 × 52 = £29,250. This is the figure your employer will use for PAYE reporting and your contract. The same formula works for any number of hours, making it easy to compare offers with different weekly commitments.

The Importance of Hours Assumptions

The biggest variable in any hourly-to-salary conversion is the number of hours you actually work each week. Many full-time roles in the UK are based on 37.5 hours (common in offices and the NHS) or 40 hours (often in retail and manufacturing). Part-time roles can be anything from a few hours to 30 hours per week. Always check your contract for your guaranteed weekly hours.

ONS defines full-time as working more than 30 paid hours per week (or 25 for teaching professions). Part-time is 30 hours or fewer. This distinction matters when comparing your earnings to national averages. For instance, the median full-time weekly earnings in April 2025 were £766.60, while part-time median weekly earnings were £280.00.

Full-Time vs Part-Time: Why the Distinction Matters

When you see a headline figure like 'median full-time salary £39,039', it applies only to those working full-time hours. If you work part-time, your annual earnings will naturally be lower, but your hourly rate might be higher or lower than the full-time median. To make a fair comparison, always convert your salary to an hourly rate.

For example, a part-time worker earning £20,000 per year for 20 hours per week has an hourly rate of £19.23 (£20,000 ÷ (20 × 52)). That's close to the full-time median hourly rate of £19.67. So your hourly rate can be a better indicator of how well you're paid, regardless of hours.

Use our Hourly to Salary tool to quickly convert your rate and see what it means in annual and monthly terms.

UK Wage Benchmarks for 2026/27

Knowing where your pay sits relative to national benchmarks helps you negotiate and plan. Here are the key figures from official sources.

National Living Wage and Minimum Wage

From April 2026, the National Living Wage (NLW) for workers aged 21 and over rises to £12.71 per hour, up from £12.21 in 2025. For 18–20 year olds, the rate is £10.85 per hour; for 16–17 year olds and apprentices, it's £8.00 per hour. These are legal minimums set by GOV.UK.

At 37.5 hours per week, the NLW gives an annual gross salary of £24,784.50. After Income Tax and National Insurance, the monthly takehome salary is approximately £1,780 (based on 2026/27 tax rates and a standard 1257L tax code, assuming no pension or student loan).

There is also a voluntary Real Living Wage, set by the Living Wage Foundation, at £13.45 per hour UK-wide and £14.80 in London for 2025-26. Many employers sign up to pay this higher rate.

Median Full-Time Earnings

According to the ONS Annual Survey of Hours and Earnings (ASHE) for April 2025, median gross annual earnings for full-time employees were £39,039. That's an increase of 4.3% from the previous year. The median hourly rate (excluding overtime) was £19.67. These figures are the most widely used benchmarks for 'average' pay in the UK.

If you earn above £39,039 full-time, you're above the median. If you earn below, you're below. But remember, medians vary by region, occupation, and age. For example, London full-time median earnings are significantly higher due to higher living costs.

NHS Pay Scales

For those in healthcare, the NHS pay scales for 2026/27 are published by NHS Employers. Band 1 (closed to new entrants) starts at £12.92 per hour. Higher bands include Higher Cost Area Supplements (HCAS) for London and surrounding areas. These scales are negotiated nationally and provide a clear progression path.

From Gross to Takehome Salary

Your takehome salary is what actually lands in your bank account after deductions. Understanding this is crucial when budgeting or comparing job offers.

Tax and National Insurance

For 2026/27, the standard Personal Allowance is £12,570. You pay 20% Income Tax on earnings between £12,571 and £50,270, and 40% above that. National Insurance is 8% on earnings between £12,570 and £50,270 (for employees), then 2% above. These rates are for England, Wales, and Northern Ireland; Scotland has different bands.

A £30,000 gross salary at 37.5 hours per week gives a monthly takehome of about £2,048 (using standard 1257L code, no pension or student loan). For a £40,000 salary, monthly takehome is roughly £2,473.

London Weighting and Regional Variations

London weighting is an additional allowance paid by some employers to offset higher living costs. It can add £3,000–£5,000 to your annual salary. The NHS HCAS is one example. When comparing offers, always consider the cost of living in your area. A £35,000 salary in London may have less purchasing power than £30,000 in a lower-cost region.

Making Sense of Your Offer

When you receive a job offer with an hourly rate, convert it to annual salary using the formula above, then estimate your takehome salary using an online calculator. Check whether the role is full-time or part-time, and whether overtime is paid at a higher rate. Overtime is taxed as ordinary income at your marginal rate, so a £2,000 bonus on a £35,000 salary adds about £1,440 to your takehome over the year.

For more detailed benchmarks, explore our salary data page, which includes regional and occupational breakdowns. Remember that your takehome salary depends on your personal circumstances, including pension contributions, student loan repayments, and tax code adjustments.

Always verify your contract and refer to official GOV.UK guidance for the latest tax and minimum wage rates.