Hourly Wage Calculator UK 2026-27
What your hourly rate is really worth — by the week, the month and the year.
Convert your hourly rate and weekly hours into gross weekly, monthly and annual pay, then see your 2026-27 take-home after income tax and National Insurance — with overtime, paid weeks, Scottish bands, and an automatic check against the April 2026 minimum wage.
52 paid weeks, rest-of-UK bands, no pension unless stated. 2026-27 rates, checked July 2026.
From hourly rate to annual pay
The formula
Hourly rate × hours per week × paid weeks per year. At £16.50 an hour for a 37.5-hour week: £16.50 × 37.5 = £618.75 a week, and £618.75 × 52 = £32,175 a year — £2,681 a month. Overtime hours are added at your chosen multiplier before annualising.
Then the deductions
Gross pay is only half the story. The calculator applies 2026-27 income tax (rest-of-UK or Scottish bands) and employee National Insurance to show what actually lands in your account — yearly, monthly, weekly, and as an effective take-home rate per hour worked.
The legal floor for every hour you work
| Age band | Hourly rate | Full-time (37.5h, 52wk) |
|---|---|---|
| 21 and over — National Living Wage | £12.71 | about £24,785 |
| 18 to 20 | £10.85 | about £21,158 |
| Under 18 | £8.00 | £15,600 |
| Apprentice | £8.00 | £15,600 |
These are the rates that apply from 1 April 2026. The calculator checks your entered rate against the band you select and flags anything below the floor. Remember the test is your average pay across all hours worked in a pay reference period — unpaid overtime can quietly drag a legal-looking rate below the minimum.
What each hour is worth after deductions
PAYE doesn't care whether you're salaried or hourly — annual earnings are taxed the same way.
| Band (rest of UK) | Income tax | Employee NI |
|---|---|---|
| £0 – £12,570 | 0% | 0% |
| £12,570 – £50,270 | 20% | 8% |
| £50,270 – £125,140 | 40% | 2% |
| £125,140+ | 45% | 2% |
On a 37.5-hour, 52-week year (1,950 paid hours), the £12,570 personal allowance covers your first £6.45 of every hour, and the 40% band doesn't start until an average rate of about £25.78 an hour. At £16.50 an hour, every marginal hour is taxed at 28% — so a £24.75 overtime hour at time-and-a-half puts about £17.82 in your pocket. Scottish taxpayers use Scotland's own bands, from the 19% starter rate to the 48% top rate; NI is UK-wide.
The rules hourly workers should know
Overtime: there's no statutory right to a premium rate — your contract decides — but your average pay across all hours worked must never fall below the minimum wage. Time-and-a-half is the most common premium: £16.50 becomes £24.75, and five such hours a week add £6,435 a year gross (about £4,633 after basic-rate tax and NI).
Holiday: almost all workers get 5.6 weeks of statutory paid holiday a year — capped at 28 days if you work a 5-day week — pro-rated for part-time. If your hours are casual or irregular, entitlement accrues at 12.07% of hours worked (5.6 ÷ 46.4 working weeks). Holiday pay should reflect your normal pay, including regular overtime, so a quoted rate that "includes holiday pay" deserves a hard look at the arithmetic.
Why the same rate can mean very different pay
Most UK full-time jobs sit between 35 and 40 hours, and 37.5 is the most common — a 9-to-5 with an unpaid half-hour lunch. The gap is bigger than it looks: at £16.50 an hour, 40 paid hours is £34,320 a year against £32,175 at 37.5 — £2,145 more gross, about £1,544 more take-home. When comparing job offers, always ask whether the quoted week includes paid breaks.
Part-time scales the same way: 25 hours at £16.50 is £16.50 × 25 × 52 = £21,450 a year. Because the £12,570 personal allowance doesn't shrink with your hours, part-time work is taxed relatively lightly — on £21,450 you'd keep about £18,964 — 88% of gross.
❓ Frequently asked Frequently asked questions
How do I work out my annual salary from an hourly rate?
Multiply your hourly rate by the hours you work each week, then by 52 weeks: £16.50 × 37.5 hours × 52 weeks = £32,175 a year. That is gross pay — this calculator then deducts 2026/27 income tax and National Insurance to show your take-home.
What is the UK minimum wage from April 2026?
From 1 April 2026 the National Living Wage is £12.71 an hour for workers aged 21 and over. The rate is £10.85 for 18 to 20-year-olds and £8.00 for under-18s and apprentices. Full-time at 37.5 hours a week, £12.71 works out to about £24,785 a year.
How much tax do I pay on an hourly wage?
PAYE treats hourly earnings exactly like a salary. At £16.50 an hour for 37.5 hours a week (£32,175 a year), 2026/27 rest-of-UK deductions are £3,921 income tax and £1,568 National Insurance, leaving take-home of about £26,686 — roughly £2,224 a month.
Do hourly workers get paid holiday?
Yes — almost all workers are legally entitled to 5.6 weeks of paid holiday a year, capped at 28 days for a 5-day week and pro-rated for part-time. For casual or irregular hours, entitlement accrues at 12.07% of hours worked (5.6 weeks ÷ 46.4 working weeks).
How is overtime paid in the UK?
There is no statutory right to premium overtime rates — your contract sets them — but your average pay across all hours worked must not fall below the minimum wage. Time-and-a-half is common: £16.50 becomes £24.75 an hour. This calculator models overtime hours at your chosen multiplier.
Is a full-time week 37.5 or 40 hours?
Most UK full-time roles are 35 to 40 hours, and 37.5 is the most common — a 9-to-5 with an unpaid lunch break. The difference matters: at £16.50 an hour, 40 paid hours is £34,320 a year against £32,175 at 37.5 hours — £2,145 more gross.
Why is my take-home hourly rate lower than my headline rate?
Because income tax and National Insurance come out of every extra pound you earn. On £16.50 an hour full-time, take-home is about £26,686 a year — an effective £13.68 for each of your 1,950 paid hours, around 83% of the headline rate.
Does the calculator work for Scotland?
Yes — switch the Scottish taxpayer option at the Detailed level to apply Scottish income tax bands, from the 19% starter rate up to the 48% top rate. National Insurance and the minimum wage are the same UK-wide.
Is the Hourly Wage Calculator free and up to date?
Yes — completely free, no sign-up, and everything runs in your browser. It uses 2026/27 HMRC tax and National Insurance rates and the April 2026 minimum wage rates, checked July 2026.
Where these figures come from
All rates and thresholds come from GOV.UK and HMRC — the sources of record.
- Minimum wage rates from April 2026 — GOV.UK — National Minimum Wage and National Living Wage rates.
- National Insurance rates and thresholds — GOV.UK — Rates and allowances: National Insurance contributions.
- Holiday entitlement — GOV.UK — Holiday entitlement.
- Income tax rates and personal allowance — GOV.UK — Income Tax rates.
- Scottish income tax — gov.scot — Scottish Income Tax.
Last checked: July 2026. Minimum wage rates are the confirmed 1 April 2026 values; tax and NI use 2026-27 thresholds.
Select the question that matches where you are right now.
Your result is your hourly rate translated into the numbers that run your life — weekly, monthly and annual pay, before and after 2026-27 tax and NI.
Use the monthly take-home for rent and budgeting, and the effective take-home hourly rate to compare offers — a higher headline rate with fewer paid hours can lose to a steadier week.
Not a payslip replica — tax codes, benefits-in-kind and week-by-week variation move individual payslips. It's the steady-state annual picture at 2026-27 rates.
The callout compares your base rate to the April 2026 floor for your age band. If it flags a shortfall, check gov.uk — underpayment is enforceable and back-payable.
Three levers set what an hourly job actually pays.
Moving from 37.5 to 40 paid hours at £16.50 adds £2,145 a year — often more than a 50p rate rise (£975 at 37.5 hours).
Unpaid shutdowns, term-time contracts or gaps between assignments cut the annual figure directly — 48 paid weeks at £16.50 × 37.5 is £29,700, not £32,175.
Between £12,570 and £50,270 every extra pound loses 20p tax and 8p NI. That's why £16.50 gross becomes an effective £13.68 take-home per hour full-time — and why overtime never feels as big as it looks.
Hourly pay responds to structure as much as to the rate itself.
Model overtime at the Standard level before agreeing to it — five hours at time-and-a-half on £16.50 is worth about £4,633 a year after tax.
From 1 April 2026 the 21+ floor is £12.71. If deductions, unpaid time or "included holiday pay" push your average below it, that's an underpayment.
Use the Advanced level's second-rate comparison — same hours, same weeks — so the difference you see is real take-home, not headline flattery.
Your hourly wage connects to the rest of your pay picture.
Add student loan plans and pension methods to the take-home picture.
Take-home pay →