How to convert a salary to an hourly rate in the UK
Quick answer: Divide your annual salary by total contracted hours in the year. A £35,000 salary on a 37.5-hour week (1,950 hours/year) is £17.95 gross per hour. After 2026/27 Income Tax and employee NI only, the estimated take-home is around £14.73 net per hour — a gap of about 18%. Pension contributions, student loans and salary sacrifice can reduce it further.
The formula itself is straightforward:
Where it gets interesting is what happens to that number after tax, and what happens when the actual hours you work differ from the contracted hours on your contract. Both of those move your real hourly rate — sometimes quite significantly.
The calculator above shows gross figures only. For what you actually take home after tax and National Insurance, use the full salary calculator. To factor in overtime, commute and work costs, use True Wage.
UK salary to hourly rate reference table (2026/27)
Gross figures only, calculated on 52 weeks per year across three common contracted hour patterns. For take-home pay, tax breakdown and True Wage figures at a specific salary point, follow the links in the table.
| Salary | 35 hrs/wk | 37.5 hrs/wk | 40 hrs/wk | Full breakdown |
|---|---|---|---|---|
| Below basic-rate threshold | ||||
| £20,000 | £10.99/hr | £10.26/hr | £9.62/hr | — |
| £25,000 | £13.74/hr | £12.82/hr | £12.02/hr | £25k take-home → |
| £28,000 | £15.38/hr | £14.36/hr | £13.46/hr | — |
| Basic-rate taxpayers (20%) | ||||
| £30,000 | £16.48/hr | £15.38/hr | £14.42/hr | £30k hourly rate → |
| £35,000 | £19.23/hr | £17.95/hr | £16.83/hr | £35k take-home → |
| £40,000 | £21.98/hr | £20.51/hr | £19.23/hr | £40k hourly rate → |
| £45,000 | £24.73/hr | £23.08/hr | £21.63/hr | £45k take-home → |
| £50,000 | £27.47/hr | £25.64/hr | £24.04/hr | £50k hourly rate → |
| Higher-rate tax (earnings above £50,270) | ||||
| £55,000 | £30.22/hr | £28.21/hr | £26.44/hr | £55k take-home → |
| £60,000 | £32.97/hr | £30.77/hr | £28.85/hr | £60k hourly rate → |
| £70,000 | £38.46/hr | £35.90/hr | £33.65/hr | £70k hourly rate → |
| £80,000 | £43.96/hr | £41.03/hr | £38.46/hr | £80k hourly rate → |
| £90,000 | £49.45/hr | £46.15/hr | £43.27/hr | £90k hourly rate → |
| £100k–£125,140 — effective tax rate spikes here | ||||
| £100,000 | £54.95/hr | £51.28/hr | £48.08/hr | £100k hourly rate → |
| £110,000 | £60.44/hr | £56.41/hr | £52.88/hr | £110k take-home → |
| £120,000 | £65.93/hr | £61.54/hr | £57.69/hr | £120k hourly rate → |
| Additional-rate tax (above £125,140) | ||||
| £130,000 | £71.43/hr | £66.67/hr | £62.50/hr | £130k take-home → |
| £150,000 | £82.42/hr | £76.92/hr | £72.12/hr | £150k take-home → |
Gross figures only. Each linked page has a full take-home breakdown, net hourly rate and True Wage calculation for that salary.
Why your effective hourly rate is almost always lower than it looks
Your contract figure is what your employer pays per hour. What you actually earn per hour — once tax, overtime and commute are factored in — is usually quite different. Three things eat into it, and they compound.
The offer letter says £23. Real life says £12 — roughly half — before any other lifestyle costs.
None of this means your salary is bad — it just makes comparisons fairer. Whether you're weighing a new job offer or wondering if a pay rise is actually worth what it looks like on paper, the True Wage calculation usually tells a very different story to the headline number.
How hours worked change your hourly rate
Weekly hours have a direct, linear effect on your gross hourly rate. The table below shows how a £40,000 salary shifts across five common working patterns.
| Hours per week | Annual hours | Gross hourly | Net hourly (tax + NI only est.) | vs 37.5hr baseline |
|---|---|---|---|---|
| 35 hrs | 1,820 | £21.98 | £17.76 | +7.1% |
| 37.5 hrs | 1,950 | £20.51 | £16.57 | baseline |
| 40 hrs | 2,080 | £19.23 | £15.54 | -6.3% |
| 45 hrs | 2,340 | £17.09 | £13.81 | -16.7% |
| 50 hrs | 2,600 | £15.38 | £12.43 | -25.0% |
The key takeaway: two people on identical £40,000 salaries can have gross hourly rates that differ by 43% if one works 35 hours and the other works 50. Unpaid overtime — hours worked beyond the contracted hours — shifts the effective rate further still, since it increases total hours without affecting pay at all.
What counts as a good hourly rate in the UK? (2026/27 benchmarks)
Context matters. Here are the reference points most useful for benchmarking your hourly rate against UK wage standards in 2026/27.
Statutory rates from GOV.UK (April 2026). ASHE 2025 figures from ONS Annual Survey of Hours and Earnings, full-time employees, UK. Role benchmarks are illustrative mid-points across pay scales.
Frequently asked questions
How do I convert a salary to an hourly rate? expand
Divide your annual salary by total contracted hours in the year. Total contracted hours = hours per week × weeks per year. On a standard 37.5-hour, 52-week contract that is 1,950 hours. So a £35,000 salary ÷ 1,950 hours = £17.95 gross per hour. The calculator above does this automatically and also shows how the rate changes across different hours-per-week values.
Why is my effective hourly rate lower than my contracted rate? expand
Three things erode it below the contracted figure. Unpaid overtime increases total hours worked without increasing pay — five extra hours per week cuts the effective rate by ~12% at any salary. Commute time adds hours committed to work that aren't compensated. Work costs (travel, lunches, subscriptions) reduce the net value of the pay you receive. These compound: most people find their real hourly rate is 20–35% below the contracted figure once all three are accounted for.
Should I use contracted hours or actual hours in the calculation? expand
It depends what you're trying to find out. Contracted hours give the legal basis for the rate — useful for checking against National Minimum Wage. Actual hours give the real effective rate — the number that matters when comparing two job offers or assessing whether a pay rise is meaningful. If you regularly work unpaid overtime, always use actual hours for any comparison, as the contracted rate will significantly flatter the picture.
Does changing weeks per year affect my hourly rate? expand
Yes. Using 52 weeks gives the most hours in the year and therefore the lowest hourly rate. Excluding statutory holiday (typically 5.6 weeks for a full-time UK worker) means using ~46–47 weeks, which produces a higher calculated rate because the same salary stretches over fewer hours. Use 52 weeks for a like-for-like comparison with other salaries. Use 46–47 if you want your rate during actual working weeks only.
How do I fairly compare two job offers with different salaries and hours? expand
Convert both to a gross hourly rate using expected actual hours — not just the contracted figure. A £48,000 role with 45-hour weeks works out to £20.51/hr, which is the same gross hourly as a £40,000 role at 37.5 hours. Factor in commute differences and benefits, and the £40k role may well come out ahead in real terms. The salary-to-hourly conversion is the starting point; True Wage adjustments give the full picture. For the broader benefits, holiday pay and job-offer trade-offs, use the salary vs hourly pay comparison guide.
What is the difference between gross and net hourly rate? expand
Job adverts quote gross; your payslip shows net. Gross hourly is your salary divided by contracted hours, before any deductions. Net hourly is what lands in your account after Income Tax and National Insurance. For a basic-rate taxpayer the gap is typically 22–28%. For higher-rate earners above £50,270 it widens to 33–40%. For the full net figure at a specific salary, use the linked pages in the reference table above.
| Primary source | How PayPrecise uses it | Link |
|---|---|---|
| Income Tax rates and allowances (2026 to 2027) | Used for Personal Allowance and main UK tax bands in calculator/editorial explanations. | View source |
| National Insurance rates and category letters | Used for NI examples and take-home calculations. | View source |
| ONS Annual Survey of Hours and Earnings 2025 | Primary benchmark source for UK earnings, pay percentiles and regional comparisons cited across salary pages. | View source |
Calculator outputs remain illustrative because tax codes, salary sacrifice, pension settings, benefits, commuting patterns and local costs vary by person.