Understanding Hourly to Annual Salary Conversion

If you are paid by the hour, working out your equivalent annual salary is straightforward: multiply your hourly rate by the number of hours you work each week, then multiply by 52 weeks. This gives your gross annual pay before tax and National Insurance. The calculation is useful for comparing job offers, budgeting, or understanding where you sit relative to the UK national average salary.

The UK National Average Salary as a Benchmark

The most authoritative source for UK earnings is the Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE). For April 2025, the median gross annual earnings for full-time employees stood at £39,039. The median hourly earnings (excluding overtime) were £19.67. These figures represent the middle point of the pay distribution – half of full-time workers earn more, half earn less.

If you divide the median annual figure by a typical 37.5-hour week (common in the NHS and many office roles) over 52 weeks, you get roughly £20.02 per hour. The slight difference from the ONS hourly median reflects that full-time employees work varying hours; the ONS hourly figure is calculated directly from reported hourly pay.

National Living Wage and Minimum Wage

The government sets minimum hourly rates that most workers must receive. In April 2025, the National Living Wage for employees aged 21 and over was £12.21 per hour. For a 37.5-hour week, that equates to about £23,809.50 per year. Rates are updated annually; for 2026/27 the NLW rises to £12.71 per hour, giving an annual equivalent of roughly £24,784.50 at 37.5 hours.

Lower rates apply for younger workers and apprentices. Always check the latest GOV.UK guidance, as these rates are a legal minimum – many employers pay above them.

How to Convert Hourly Rate to Annual Salary

The formula is simple:

Annual salary = hourly rate × hours per week × 52 weeks

Common weekly hours assumptions:

• 37.5 hours – standard for NHS, many public sector and office roles
• 40 hours – common in retail, hospitality, and some private sector jobs
• 35 hours – some professional services and civil service roles

Example: If you earn £15 per hour and work 40 hours per week, your annual gross salary is £15 × 40 × 52 = £31,200. The table below shows a few conversions based on a 40-hour week (from the Hourly to Salary tool):

Hourly rate	Weekly (40h)	Annual gross
£12	£480	£24,960
£15	£600	£31,200
£20	£800	£41,600
£25	£1,000	£52,000

For a 37.5-hour week, multiply the hourly rate by 37.5 then by 52. For example, £19.67 per hour (the median) gives £19.67 × 37.5 × 52 = £38,361 – close to the ONS median annual figure.

Overtime and London Weighting

Your actual take-home pay may differ from the basic conversion if you receive overtime pay or a London weighting allowance.

• Overtime is typically paid at a higher rate (e.g., time-and-a-half) and is not guaranteed. When estimating annual salary, consider only your contracted hours unless overtime is regular.
• London weighting is an extra payment for employees working in or near London. For example, NHS staff in Inner London receive 20% of basic salary (subject to a minimum of £5,794 and maximum of £8,746 for 2026/27). If your hourly rate already includes London weighting, use that rate in the conversion. If it is paid separately, add the annual allowance to your basic annual figure.

Using the Hourly to Salary Tool

Our Hourly to Salary calculator lets you enter your hourly rate, weekly hours, and tax code to get an instant annual and monthly estimate, including estimated net pay after tax and National Insurance. You can also explore salary data for different occupations and regions to see how your pay compares to the UK national average salary.

Remember that the conversion assumes a steady contracted week with no unpaid overtime, bonuses, tips, or salary sacrifice. Actual pay depends on your rota, holiday pay method, and any additional allowances. Always check your contract and official GOV.UK guidance for the most accurate picture.