How to Work Out Hourly Rate from Salary

If you are a UK employee or job seeker, understanding how to work out hourly rate from salary is essential for comparing job offers, negotiating pay, or checking if you are earning at least the National Living Wage. The basic formula is straightforward: divide your annual salary by the number of weeks you work per year (usually 52) and then by your average weekly hours. For example, a salary of £30,000 with a 37.5-hour week gives an hourly rate of about £15.38.

However, the real picture is more nuanced. Your contract may specify different hours, you might work overtime, or you could receive London weighting. This guide uses the latest official UK data to help you make accurate conversions and understand where your pay sits in the national landscape.

The Standard Conversion Formula

The most common method to work out hourly rate from salary is:

Hourly rate = Annual salary ÷ (weekly hours × 52)

This assumes you are paid for 52 weeks a year and have a consistent weekly schedule. For part-time workers, the same formula applies using your actual contracted hours. If you work variable hours, use your average weekly hours over a representative period.

Many UK employers use a 37.5-hour week for full-time roles, but some use 35, 37, or 40 hours. Always check your contract. The Office for National Statistics (ONS) defines full-time as more than 30 paid hours per week (or 25+ for teaching professions), and part-time as 30 hours or fewer.

UK Earnings Benchmarks from ONS ASHE 2025

The ONS Annual Survey of Hours and Earnings (ASHE) provides the most authoritative picture of UK pay. For April 2025, the key figures are:

• Median full-time gross annual earnings: £39,039
• Median full-time weekly earnings: £766.60
• Median full-time hourly earnings (excluding overtime): £19.67

These figures are for employees who have been in their job for at least a year. Using the 37.5-hour week assumption, £39,039 equates to roughly £20.02 per hour – close to the ASHE hourly median. The slight difference arises because ASHE calculates hourly pay directly from reported hours and pay, not from annual salary divided by a fixed week.

National Living Wage and Minimum Wage

The government sets minimum hourly rates that most workers must receive. As of April 2025:

• National Living Wage (21+ years): £12.21 per hour
• National Minimum Wage (18–20 years): £10.00 per hour
• National Minimum Wage (16–17 years): £7.55 per hour
• Apprentice rate: £7.55 per hour (for apprentices under 19 or in first year)

If you are aged 21 or over, your hourly rate must be at least £12.21. To check your annual equivalent, multiply by your weekly hours and 52 weeks. For a 37.5-hour week, that gives roughly £23,809.50 per year.

NHS Pay Scales 2026/27

Public sector pay scales are a useful reference for many roles. NHS Employers published 2026/27 rates effective from 1 April 2026. Examples include:

• Band 5 (entry): £16.40 per hour
• Band 6 (entry): £20.44 per hour
• Band 1 (closed to new entrants): £12.92 per hour

These rates include Higher Cost Area Supplements (HCAS) for London and surrounding areas. When comparing a salary that includes London weighting, remember to include the allowance in your annual figure before calculating the hourly rate.

Part-Time vs Full-Time Considerations

Part-time employees often have different hourly rates compared to full-time colleagues in the same role. When you work out hourly rate from salary, use your actual contracted hours – not a full-time equivalent. For example, if you work 20 hours a week and earn £15,000 a year, your hourly rate is £15,000 ÷ (20 × 52) = £14.42.

ONS data shows that part-time jobs made up 28.0% of employee jobs in April 2025, up from 27.2% the year before. Mean weekly hours for all employees fell to 32.8 hours, partly due to the rise in part-time work.

Overtime and Other Adjustments

Overtime pay can complicate the conversion. ASHE distinguishes between basic pay and overtime. If you regularly work overtime, your effective hourly rate may be higher than your basic rate. However, when comparing salaries, focus on the basic contracted rate unless overtime is guaranteed.

Similarly, bonuses, tips, and salary sacrifice schemes (e.g., pension contributions or cycle-to-work) affect your gross pay. The conversion formula works best for base salary without these extras.

Using Our Tools

To make the calculation easier, try our hourly calculator which lets you input your salary and hours to get an instant hourly rate. You can also explore salary data for detailed benchmarks by occupation and region.

Summary

Knowing how to work out hourly rate from salary is a vital skill for UK workers. Use the formula with your actual weekly hours, compare against official benchmarks like the ONS median of £19.67 per hour, and ensure you are above the National Living Wage. Remember that your contract, London weighting, and overtime can all change the picture. Always check official guidance from GOV.UK and your employer for the most accurate figures.