Comparing Hourly Jobs with Salaried Offers Using SOC Codes

When you’re weighing up a job offer, you might see an hourly rate for one role and an annual salary for another. How do you know which is better? The answer lies in understanding SOC codes with salary data from official UK sources. SOC codes (Standard Occupational Classification) group jobs by skill and type, and the Office for National Statistics publishes median hourly and annual earnings for each code. This lets you compare like with like.

What the Latest ONS Data Shows

The Annual Survey of Hours and Earnings (ASHE) for 2025 gives a clear picture. Median gross weekly earnings for full-time employees were £766.60, up 5.3% from 2024. Median gross annual earnings for those in the same job for at least a year reached £39,039. On an hourly basis (excluding overtime), the median was £19.67. These figures are provisional but provide a solid benchmark.

For lower-paid occupations, the National Living Wage (NLW) for workers aged 21 and over was £12.21 per hour from April 2025. Many caring, leisure, and service roles saw hourly pay increases close to or above that rate. If you’re in a SOC code that falls into these groups, your hourly rate should at least meet the NLW.

NHS Pay Scales: A Practical Example

Public sector pay scales are a useful reference. NHS Employers published 2026/27 pay scales effective from 1 April 2026. For example, a Band 5 nurse or allied health professional starts at £38,488 annual salary, which works out at £19.68 per hour (based on a standard 37.5-hour week). A Band 6 role starts at £47,951 annual, or £24.52 hourly. These rates include higher cost area supplements (HCAS) for London and other high-cost areas, which can add 20% of basic salary (minimum £5,794, maximum £8,746). So if you’re comparing an hourly job in London with a salaried NHS post, remember to factor in weighting.

Converting Hourly to Annual: The Simple Rule

To compare an hourly rate with an annual salary, use this formula:

Annual ≈ hourly rate × contracted hours per week × 52 weeks

For a typical 37.5-hour week:

• £12.21/hr (NLW) → £12.21 × 37.5 × 52 = £23,809.50
• £19.67/hr (median) → £19.67 × 37.5 × 52 = £38,356.50
• £24.52/hr (NHS Band 6) → £24.52 × 37.5 × 52 = £47,814

These are rough estimates. Actual pay depends on your rota, whether overtime is paid, how holiday pay is calculated, and any salary sacrifice schemes (like pension contributions or cycle-to-work). Always check your contract.

Using SOC Codes to Benchmark Your Pay

ASHE Table 2 breaks down earnings by two-digit SOC code, while Table 20 gives more detail by age and occupation. For example, if you’re a software developer (SOC 213), you can look up the median hourly and annual pay for that code. This tells you whether an hourly contract rate is competitive with a permanent salary. The ONS also publishes ad hoc tables for specific occupations – for instance, estimates for SOC codes 212, 213, 221, 225, 241, and others are available for England.

Important caveat: ASHE annual figures are for employees who have been in the job for at least a year and include pay affected by absence (e.g., parental leave). They are not directly comparable to weekly or hourly figures from the same survey. For hourly comparisons, use the hourly pay tables.

London Weighting and Regional Differences

Salaries and hourly rates vary by region. The ONS data shows that median earnings in London are significantly higher than the UK average. NHS HCAS rates are a clear example: outer London adds 20% of basic salary, subject to minimum and maximum payments. If you’re comparing a job in London with one elsewhere, adjust your conversion accordingly. Our salary articles cover regional pay differences in more detail.

Key Takeaways for Job Seekers

• Use SOC codes with salary data from ONS ASHE to find typical pay for your occupation.
• Convert hourly rates to annual using hours per week × 52, but remember this is an estimate.
• Check official pay scales for your sector (NHS, teaching, civil service) for exact figures.
• Factor in London weighting or HCAS if applicable.
• Always verify your contract for actual hours, overtime policy, and benefits.

For a quick conversion, try our Hourly to Salary calculator. It uses the standard 37.5-hour week and 52-week year, but you can adjust the hours to match your contract.

FAQs

What are SOC codes and how do they relate to salary? SOC codes (Standard Occupational Classification) are a system used by the Office for National Statistics to categorise jobs by skill level and occupation. The Annual Survey of Hours and Earnings (ASHE) publishes median hourly and annual earnings for each SOC code, allowing you to compare typical pay for your role. For example, SOC code 221 (health professionals) will show different pay levels than SOC 211 (science professionals). Using SOC codes with salary data helps you benchmark your hourly rate or annual salary against national averages.

How do I convert an hourly rate to an annual salary? A common rule of thumb is to multiply your hourly rate by your contracted weekly hours, then by 52 weeks. For a standard 37.5-hour week: annual ≈ hourly × 37.5 × 52. For example, £20 per hour gives roughly £39,000 per year. However, this assumes no unpaid overtime, consistent hours, and no salary sacrifice. Always check your contract for actual hours and holiday pay. The Hourly to Salary calculator on this site can do the conversion for you.

Which UK pay scales should I use for comparison? For broad benchmarks, the ONS ASHE tables provide median earnings by SOC code – ideal for comparing your role. For specific sectors, use official pay scales: NHS pay bands (published by NHS Employers), teacher pay scales (DfE), or civil service grades. The National Living Wage (currently £12.21 for ages 21+ in 2025) sets the legal floor. Remember that London weighting or HCAS can add thousands to annual pay. Our salary data page summarises key benchmarks.