To calculate an hourly rate from an annual salary in the UK, divide the gross yearly salary by the total number of contracted working hours in a year.
For most salaried employees, the calculation is:
Hourly rate = Annual salary ÷ (weekly contracted hours × 52)
For example, an employee earning £30,000 a year and working 37.5 hours per week has a gross hourly rate of approximately:
£30,000 ÷ (37.5 × 52) = £15.38 per hour
The result is a gross hourly rate before Income Tax, National Insurance, workplace pension deductions, student loan repayments or other deductions.
Annual Salary to Hourly Rate Calculator
Enter the following figures into a calculator:
- gross annual salary;
- contracted hours per week; and
- 52 weeks per year.
The formula is:
Annual salary ÷ weekly hours ÷ 52 = hourly rate
The order of the calculation does not change the result. Someone can either divide the annual salary by 52 first to find weekly pay or calculate annual hours first.
Enter a gross annual salary and contracted weekly hours to calculate the equivalent hourly, weekly, monthly and daily pay rates.
Use the gross salary before Income Tax, National Insurance, pension contributions or other deductions.
Enter basic annual salary. Exclude uncertain bonuses and commission unless calculating total expected earnings.
Exclude unpaid lunch breaks. Paid annual leave normally remains within a salaried 52-week calculation.
These figures provide a daily rate and show how regular unpaid overtime can affect the effective hourly rate.
Leave blank if a daily equivalent is not needed.
Add only hours regularly worked without additional pay.
Estimate net hourly pay or compare the gross contractual rate with the applicable April 2026 minimum wage.
Use an HMRC estimate or annualised payslip figure. The calculator does not calculate tax or payroll deductions.
Rates shown apply from 1 April 2026. Apprentice eligibility and statutory pay calculations can depend on individual facts.
The salary equivalents will update immediately.
Example for a £35,000 salary
An employee earns £35,000 and works 37.5 hours per week.
- Annual contracted hours: 37.5 × 52 = 1,950 hours
- Hourly rate: £35,000 ÷ 1,950 = £17.95
- Gross equivalent hourly rate: £17.95 per hour
This is the contractual hourly equivalent of the salary. It is not necessarily the amount the employee receives after tax.
What Is the Hourly Rate for Common UK Salaries?
The following table shows gross hourly rates for common annual salaries based on three typical working patterns.
| Annual salary | 35 hours a week | 37.5 hours a week | 40 hours a week |
| £20,000 | £10.99 | £10.26 | £9.62 |
| £25,000 | £13.74 | £12.82 | £12.02 |
| £30,000 | £16.48 | £15.38 | £14.42 |
| £35,000 | £19.23 | £17.95 | £16.83 |
| £40,000 | £21.98 | £20.51 | £19.23 |
| £45,000 | £24.73 | £23.08 | £21.63 |
| £50,000 | £27.47 | £25.64 | £24.04 |
| £60,000 | £32.97 | £30.77 | £28.85 |
| £75,000 | £41.21 | £38.46 | £36.06 |
| £100,000 | £54.95 | £51.28 | £48.08 |
These figures are rounded to the nearest penny and exclude bonuses, commission, benefits, overtime and employer pension contributions.
A low salary shown in the table may not be lawful for every working pattern. Eligible workers must receive at least the applicable National Minimum Wage when their pay and working time are assessed under the relevant rules.
How Many Annual Hours Should Be Used?
Annual contracted hours are normally calculated by multiplying weekly contracted hours by 52.
| Weekly contracted hours | Annual contracted hours |
| 20 hours | 1,040 hours |
| 25 hours | 1,300 hours |
| 30 hours | 1,560 hours |
| 35 hours | 1,820 hours |
| 37.5 hours | 1,950 hours |
| 40 hours | 2,080 hours |
| 45 hours | 2,340 hours |
The employee’s contract or written statement of employment particulars should confirm the normal weekly hours.
Only working time should generally be included. For example, an employee who is at work from 9am until 5pm but takes an unpaid one-hour lunch break normally works seven paid hours rather than eight.
Should Paid Holiday Be Deducted From Annual Working Hours?
Paid annual leave should not normally be deducted when calculating the contractual hourly equivalent of a fixed annual salary.
Most workers who work five days a week are entitled to at least 5.6 weeks of paid annual leave, equivalent to 28 days. An employer can include bank holidays within that entitlement.
The employee continues receiving salary while taking paid leave, so the standard calculation still uses 52 weeks. The official UK holiday entitlement rules explain how statutory leave applies to different working arrangements.
For example:
£30,000 ÷ 1,950 contracted annual hours = £15.38 per hour
It would usually be misleading to subtract 5.6 weeks of paid holiday and present the higher result as the employee’s contractual hourly rate.
However, someone assessing the value of two job offers might also calculate an effective rate for hours physically worked:
Annual salary ÷ estimated hours actually worked
This alternative can account for differences in annual leave, bank holidays and working patterns, but it should be clearly labelled. It is not the standard payroll hourly rate.
How Are Unpaid Breaks Treated?
Unpaid breaks should normally be excluded from weekly working hours.
Consider an employee who attends work for 40 hours each week but has five unpaid 30-minute lunch breaks:
- total attendance time: 40 hours;
- unpaid breaks: 2.5 hours;
- paid working time: 37.5 hours;
- annual paid hours: 37.5 × 52 = 1,950.
If the employee earns £32,000:
£32,000 ÷ 1,950 = £16.41 per hour
Using the full 40-hour attendance period would produce £15.38 per hour, even though 2.5 hours each week are unpaid.
The employment contract, staff handbook and payslip should clarify whether breaks are paid.
How Is a Monthly Salary Converted to an Hourly Rate?
A monthly salary can first be converted into annual pay:
Monthly salary × 12 = annual salary
The annual figure can then be divided by annual contracted hours.
Example
An employee receives £2,500 gross per month and works 40 hours per week.
- £2,500 × 12 = £30,000 annual salary
- 40 × 52 = 2,080 annual hours
- £30,000 ÷ 2,080 = £14.42 per hour
Dividing monthly salary by four weeks is less accurate because a calendar year contains approximately 52 weeks, while 12 four-week periods cover only 48 weeks.
How Is a Weekly Salary Converted to an Hourly Rate?
The formula for weekly pay is:
Weekly salary ÷ weekly contracted hours = hourly rate
For example, an employee receives £750 a week for 37.5 hours:
£750 ÷ 37.5 = £20 per hour
If the weekly salary is derived from an annual salary, it can be calculated as:
Annual salary ÷ 52 = weekly salary
A £39,000 annual salary is equivalent to £750 gross per week.
How Is an Annual Salary Converted to a Daily Rate?
A basic daily rate can be calculated using the employee’s weekly working days:
Annual salary ÷ 52 ÷ working days per week
An employee earning £40,000 and working five days per week has a daily equivalent of:
£40,000 ÷ 52 ÷ 5 = £153.85 per day
This calculation assumes each working day is the same length. Where shifts vary, calculating the hourly rate first will normally produce a more reliable comparison.
How Can Take-Home Hourly Pay Be Calculated?
Gross hourly pay is not the same as take-home hourly pay.
To estimate net hourly pay:
Annual take-home pay ÷ annual contracted hours = net hourly rate
Annual take-home pay may be affected by:
- Income Tax;
- employee National Insurance;
- workplace pension contributions;
- student loan or postgraduate loan repayments;
- salary sacrifice arrangements;
- taxable benefits;
- tax code adjustments; and
- Scottish Income Tax rates where applicable.
HMRC’s Income Tax estimation service can estimate take-home pay for an employee during the current tax year, including Income Tax, National Insurance, pension contributions and student loan repayments.
Net hourly pay example
Suppose an employee:
- earns £40,000 gross;
- works 37.5 hours per week;
- has estimated take-home pay of £31,500 a year.
The gross hourly rate is:
£40,000 ÷ 1,950 = £20.51
The estimated net hourly rate is:
£31,500 ÷ 1,950 = £16.15
The exact result depends on the employee’s personal tax position. A current payslip should be used where an accurate figure is required.
Should Bonuses and Commission Be Included?
Bonuses and commission should only be included when calculating an hourly equivalent of total annual cash earnings.
For a basic contractual rate, use basic salary alone:
Basic annual salary ÷ annual contracted hours
For an estimated total earnings rate, use:
Basic salary + expected bonus + expected commission ÷ annual hours
For example, an employee receives:
- £35,000 basic salary;
- £3,000 annual commission;
- £2,000 bonus;
- 1,950 contracted hours.
The basic hourly rate is:
£35,000 ÷ 1,950 = £17.95
The total cash earnings equivalent is:
£40,000 ÷ 1,950 = £20.51
Guaranteed and discretionary bonuses should not be treated as identical. A job offer with a lower basic salary and a large performance-related bonus may provide less predictable income.
Does Unpaid Overtime Reduce the Effective Hourly Rate?
Unpaid overtime can significantly reduce the effective hourly rate.
A salaried employee may not have an automatic legal right to overtime pay, although the employment contract should explain what counts as overtime and whether additional payment or time off in lieu is available.
Acas provides further information about pay for working extra hours.
Suppose an employee earns £45,000 for a contractual 37.5-hour week:
£45,000 ÷ 1,950 = £23.08 per contracted hour
If the employee regularly works 45 hours per week without additional pay:
£45,000 ÷ (45 × 52) = £19.23 per hour actually worked
That is a reduction of £3.85 per hour.
Keeping a record of actual hours can help employees compare job offers and identify whether excessive unpaid overtime is reducing the real value of their salary.
Most adult workers should not normally work more than an average of 48 hours a week unless they voluntarily opt out in writing. The average is usually measured over 17 weeks under the maximum weekly working-hours rules.
How Does the National Minimum Wage Affect Salaried Employees?
The National Minimum Wage is expressed as an hourly rate, but it also applies to eligible employees who receive an annual salary.
Employers must therefore ensure that a salaried worker’s pay does not fall below the relevant minimum when assessed under the statutory calculation.
From 1 April 2026, the main UK rates are:
| Worker category | Minimum hourly rate |
| Age 21 and over | £12.71 |
| Age 18 to 20 | £10.85 |
| Under 18 | £8.00 |
| Eligible apprentice | £8.00 |
The rates are confirmed through the government’s National Minimum Wage rate table.
At the £12.71 rate for workers aged 21 or over, the approximate minimum annual salary would be:
| Weekly hours | Approximate annual pay at £12.71 |
| 35 hours | £23,132.20 |
| 37.5 hours | £24,784.50 |
| 40 hours | £26,436.80 |
These are simple illustrations rather than definitive payroll compliance calculations. Additional hours, unpaid working time, salary sacrifice, deductions and the worker’s pay-reference period can affect the legal assessment.
The government’s minimum-wage calculator should be used where underpayment is suspected.
How Can Hourly Rates Be Used to Compare Job Offers?
Annual salary alone does not show the full value of a job offer. A meaningful comparison should consider:
- weekly contracted hours;
- expected unpaid overtime;
- paid annual leave;
- employer pension contributions;
- guaranteed bonuses;
- commission;
- private healthcare or insurance;
- travel and commuting costs;
- home-working arrangements;
- professional subscriptions;
- training support; and
- flexibility.
For example:
Job A
- salary: £40,000;
- hours: 40 per week;
- hourly equivalent: £19.23.
Job B
- salary: £38,000;
- hours: 35 per week;
- hourly equivalent: £20.88.
Job A pays £2,000 more annually, but Job B offers a higher contractual hourly rate and 260 fewer contracted hours each year.
The better offer will depend on the employee’s priorities, pension arrangements, commuting costs and career prospects.
Is an Employee’s Hourly Rate Comparable to a Freelancer’s Rate?
An employee’s salary-equivalent hourly rate should not be compared directly with the amount a freelancer or sole trader charges customers.
A self-employed rate must often cover:
- unpaid holidays;
- sickness;
- administration;
- non-billable time;
- equipment;
- software;
- professional insurance;
- travel;
- accounting;
- tax; and
- pension provision.
This is why the typical self-employed painter and decorator hourly rate or self-employed gardener hourly rate can appear much higher than the hourly equivalent of an employee’s salary.
The customer rate is business revenue, not take-home wages. Sole traders calculating a sustainable price should account for the expenses that may be claimed when self-employed and divide their required revenue by realistic billable hours rather than total available hours.
Someone adding freelance income alongside employment can also use the UK side-hustle tax calculator to estimate how additional profit may affect Income Tax and National Insurance.
What Are the Most Common Calculation Mistakes?
Using 48 Weeks Instead of 52
Multiplying a monthly salary by four weeks produces only 48 weeks. Annual salary calculations should normally use 52 weeks.
Deducting Paid Holiday
Paid leave remains part of a salaried employee’s remuneration. It should not normally be removed from the standard contractual calculation.
Including Unpaid Lunch Breaks
Only paid or working hours should normally be used. An unpaid one-hour break should not automatically be counted as a paid hour.
Ignoring Regular Overtime
The contractual rate and actual effective rate may be very different when an employee regularly works extra unpaid hours.
Comparing Gross Salary with Take-Home Pay
Gross hourly rate is calculated before deductions. Net hourly pay must be based on actual or estimated take-home income.
Treating Self-Employed Revenue as Wages
A freelancer charging £30 an hour does not necessarily earn £30 an hour personally after costs, tax and non-billable work. Rates reaching £50 or more in some higher-paying UK side hustles usually reflect specialist skills, business expenses or inconsistent workloads.
Final Summary
To calculate an hourly rate from an annual salary in the UK, divide gross annual pay by weekly contracted hours multiplied by 52.
For a standard 37.5-hour week:
Hourly rate = Annual salary ÷ 1,950
For a 40-hour week:
Hourly rate = Annual salary ÷ 2,080
Paid holiday should normally remain within the calculation, while unpaid breaks should be excluded. Bonuses, commission and overtime can be calculated separately when comparing total earnings.
Anyone checking minimum-wage compliance should use the official government calculation because unpaid working time, deductions, additional hours and pay-reference periods can affect the legal result.
Frequently Asked Questions
What is £30,000 a year per hour in the UK?
A £30,000 salary is approximately £15.38 per hour for a 37.5-hour week, £14.42 for a 40-hour week or £16.48 for a 35-hour week.
What is £35,000 a year per hour?
A £35,000 salary is approximately £17.95 per hour based on 37.5 hours per week.
What is £40,000 a year per hour?
A £40,000 annual salary is approximately £20.51 per hour for 37.5 hours a week or £19.23 for 40 hours a week.
What is £50,000 a year per hour?
A £50,000 salary is approximately £25.64 per hour based on a 37.5-hour working week.
How many working hours are in a year?
There are 1,950 contracted hours in a year for someone working 37.5 hours a week and 2,080 hours for someone working 40 hours a week.
Is an hourly salary calculation before or after tax?
The standard calculation produces a gross hourly rate before tax and other payroll deductions.
Are bank holidays deducted from annual hours?
Bank holidays are not normally deducted when calculating the contractual hourly equivalent of a fixed salary because the employee remains paid. They may be considered when calculating an alternative rate based only on hours physically worked.
Should pension contributions be included?
Employee pension deductions affect take-home pay but not the basic gross hourly rate. Employer pension contributions may be included when comparing total remuneration packages.
Can a salaried employee earn below minimum wage?
Eligible salaried workers must still receive at least the applicable National Minimum Wage. Additional unpaid hours or certain deductions can cause an apparent annual salary to breach minimum-wage rules.
How is part-time salary converted to hourly pay?
Use the same formula: divide the part-time annual salary by the employee’s part-time weekly hours multiplied by 52.
More in Finance & Tax
Sick Pay for Self Employed People in the UK: What Can You Claim in 2026?
Self-employed people in the UK do not normally receive Statutory Sick Pay when illness or an injury prevents them from working. Statutory Sick Pay is an employment right paid by an employer, so sole traders, freelancers, independent contractors and self-employed agency workers usually fall outside the scheme. The main financial support available may include New […]
Costa Coffee Franchise Cost UK: Investment, Fees and Requirements
The Costa Coffee franchise cost is not publicly confirmed as a single fixed amount. Costa Coffee does not publish a standard UK franchise fee, royalty percentage, minimum personal investment or complete shop-opening package on its public website. Independent UK franchise platforms commonly estimate that opening a Costa Coffee location could require approximately £250,000 to £800,000, […]