Convert your annual salary to an hourly rate. Find out exactly how much you earn per hour based on your yearly salary and weekly working hours. Useful for comparing job offers and negotiating pay.
To convert an annual salary to an hourly rate, divide your yearly salary by the total number of hours you work in a year. The standard calculation is: Annual Salary ÷ (Hours per Week × Weeks Worked per Year) = Hourly Rate.
The average full-time employee in the UK works 37.5 hours per week. However, this can vary by industry and role. Some sectors work 35 hours, others 40 or more. Check your employment contract for your exact weekly hours.
UK law requires employers to provide at least 5.6 weeks of paid holiday per year (28 days for someone working 5 days a week). This includes bank holidays. When calculating your hourly rate, you can choose whether to include or exclude holiday pay in the calculation.
Knowing your hourly rate helps when comparing job offers that quote different time periods (hourly vs annual), negotiating overtime pay, understanding the true cost of time off, or working out what to charge as a contractor or freelancer.
It depends on your purpose. For comparing your effective earning rate to hourly workers, include holidays: divide annual salary by actual hours worked excluding holiday time. For example, £30,000 salary with 28 days holiday, working 37.5 hours weekly: 52 weeks minus 5.6 weeks holiday = 46.4 working weeks. Total hours: 37.5 × 46.4 = 1,740 hours. Hourly rate: £30,000 ÷ 1,740 = £17.24. This reflects what you earn for each hour actually worked. However, when calculating daily rates for freelancing or contracting based on your salaried rate, don't exclude holidays because you're establishing an equivalent total annual income. If converting £30,000 salary to day rate: £30,000 ÷ 260 working days = £115.38 daily, or £30,000 ÷ (52 weeks × 5 days) = £115.38 daily. The client doesn't pay for your holidays, so your day rate must generate the same annual total within fewer working days. Many contractors multiply their desired salary equivalent by 1.3-1.5× to account for no sick pay, no pension contributions, no paid holiday, self-employment costs, and income irregularity. So £30,000 salaried becomes £39,000-45,000 freelance equivalent, translating to £150-173 daily or £20-23 hourly.
UK National Minimum Wage (2026/27) varies by age: £11.50 for 21+, £8.15 for 18-20, £6.10 for under-18, and £6.10 for apprentices. The Real Living Wage (voluntary, higher rate) is £12.60 UK-wide, £13.85 in London. Calculate your hourly rate including all hours worked, including unpaid overtime. If your £28,000 salary assumes 37.5 hours weekly but you routinely work 45 hours, your true hourly rate is £28,000 ÷ (45 × 52) = £11.97, barely above minimum wage despite appearing as a decent salary. Many salaried professionals work substantial unpaid overtime, significantly reducing their effective hourly rate below what the base calculation suggests. Someone on £35,000 working 40 contracted hours but 50 actual hours weekly earns £13.46 hourly, whereas working only contracted hours would be £16.83 hourly — the overtime costs £3.37 per hour in foregone value. This matters for career decisions: a £32,000 job with strict 37.5-hour weeks (£16.41 hourly) beats a £38,000 job requiring 50 weekly hours (£14.62 hourly) if you value time. Always assess total compensation per hour, not just headline salary.
Freelance rates must exceed salaried equivalents significantly to compensate for employment costs and risks that employees don't face. Start with your desired annual income as if employed, then add: employer National Insurance (13.8%), pension contributions (3-6%), paid holiday (10.8% based on 28 days), sick pay provision (estimate 2%), training and professional development (2-3%), accounting and legal costs (1-2%), insurance (professional indemnity, public liability - 1-2%), equipment and software (1-3%), and profit margin for business growth (5-10%). These additions total 40-55% overhead on top of desired salary. Additionally, freelancers don't work 52 weeks yearly after accounting for business development, administration, gaps between clients, and unbillable time. Realistically expect 200-220 billable days annually rather than 260. So desired £40,000 salaried equivalent needs £60,000-62,000 freelance revenue accounting for overhead, spread across 200 days = £300-310 daily or £37.50-38.75 hourly for 8-hour days. However, market rates constrain what you can charge — research your industry and experience level to set competitive rates. Junior freelancers might charge £200-250 daily, mid-level £300-500, senior £500-800, specialist consultants £800-1,500. Don't undervalue yourself trying to compete on price; compete on quality, reliability, and expertise instead.
Annual hours: 37.5 hours × 46.4 working weeks (52 minus 5.6 holiday weeks) = 1,740 hours. Hourly rate: £30,000 ÷ 1,740 = £17.24. Daily rate (7.5-hour day): £129.31. Weekly rate: £646.55. This calculation shows actual earning rate per hour worked. Alternatively, dividing by total 52 weeks gives £16.03 hourly if you prefer to include paid holiday as worked time.
Working weeks: 52 - 5 = 47 weeks. Annual hours: 40 × 47 = 1,880 hours. Hourly rate: £45,000 ÷ 1,880 = £23.94. Daily rate (8-hour day): £191.49. This demonstrates how longer hours and less holiday increase hourly rate compared to same salary with shorter hours. The same £45,000 at 37.5 hours would be £25.50 hourly.
Desired £60,000 salaried equivalent. Add 50% overhead: £90,000 freelance revenue needed. Divide by 200 billable days: £450 daily rate. At 7.5 hours daily: £60 hourly. At 8 hours daily: £56.25 hourly. This reflects industry norm of 1.5-2× salary multiplication when converting to contracting rates to maintain equivalent living standards after all costs and risks.
Always clarify whether job offers quote gross (before tax) or net (after tax) pay, and annual, monthly, or hourly rates. Most UK jobs quote annual gross salary but some hourly or shift-based roles quote hourly net rates causing confusion when comparing. Understand that gross salary isn't take-home pay — deduct income tax (0-45%), National Insurance (0-8%), pension contributions (typically 5%), and student loan repayments if applicable. A £35,000 gross salary becomes approximately £27,500 take-home after all deductions. Use income tax calculators to see actual disposable income. When comparing jobs, consider total package: salary, pension matching (5-10% extra value), private healthcare (worth £500-2,000 annually), bonus potential, share options, flexible working, and commute costs. A £37,000 job with 10% pension match, healthcare, and work-from-home beats a £40,000 job with no benefits and £200 monthly commute costs when you calculate total value. Track actual hours worked including commute time when evaluating offers — two hours daily commuting on a £40,000 salary working 40 office hours means 50 total hours weekly, reducing effective hourly rate significantly. For shift workers and those with irregular hours, calculate average weekly hours over a month or quarter rather than single-week snapshots. Zero-hour contracts require careful calculation as hours fluctuate; track actual earnings monthly to determine realistic hourly and annual equivalents. Finally, remember that gross hourly rate isn't spending power — focus on net hourly rate after all deductions to understand true earning capacity and whether overtime or second jobs are worthwhile after tax.