What Is a Good Salary in the UK? Debunking Myths About Hourly Pay and Overtime

Understanding what constitutes a good salary in the UK is not as simple as looking at a single number. The answer depends on your industry, experience, location, and whether you work overtime or receive additional allowances. Many job seekers and employees fall for common myths about hourly pay and overtime that can lead to unrealistic expectations or poor financial decisions. This article uses the latest official data from the Office for National Statistics (ONS), GOV.UK, and NHS pay scales to set the record straight.

The Basics: Hourly to Annual Conversion

Before tackling myths, it helps to know how hourly rates translate into annual salaries. The standard rule of thumb is:

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

For example, if you earn £20 per hour and work 37.5 hours per week (common in the NHS and many office roles), your gross annual salary would be £20 × 37.5 × 52 = £39,000. However, this calculation assumes you work every week of the year with no unpaid leave, no overtime, and no bonuses. In reality, your actual pay may differ.

The ONS Annual Survey of Hours and Earnings (ASHE) for April 2025 shows that the median gross annual earnings for full-time employees in the UK were £39,039, and the median hourly earnings (excluding overtime) were £19.67. This gives a useful benchmark: a salary around or above this median is often considered good, but context matters.

Myth 1: “My Hourly Rate Times 40 Hours Times 52 Weeks Gives My True Annual Salary”

Many people assume a 40-hour workweek, but full-time contracts in the UK often use 37.5 hours (especially in healthcare, education, and some public sector roles). The NHS, for example, defines full-time as 37.5 hours per week for Agenda for Change staff. Using 40 hours instead of 37.5 can overstate your annual salary by over 6%. Always check your contract for your exact contracted hours.

Additionally, the conversion assumes you work all 52 weeks. If you take unpaid leave, have irregular shifts, or your role includes unpaid overtime (common in salaried professional jobs), your actual annual income will be lower. The ONS ASHE data captures actual payments made to employees, not theoretical maximums.

Myth 2: “Overtime Is Always Paid at Time-and-a-Half or Double Time”

Overtime pay rates vary widely by employer and sector. While some industries (e.g., retail, hospitality, manufacturing) may offer enhanced rates for extra hours, many salaried roles do not pay overtime at all. For example, teachers, managers, and many office workers are expected to work additional hours as part of their salary. Even when overtime is paid, it may be at your basic hourly rate rather than a premium.

NHS staff do receive overtime enhancements (e.g., time-and-a-half for weekdays, double time for bank holidays), but these are separate from base pay. The ONS median hourly earnings figure of £19.67 specifically excludes overtime, so if you regularly work extra hours, your actual hourly earnings could be higher – but not necessarily at a premium rate.

Myth 3: “London Weighting Is Automatically Added to All London Jobs”

London weighting is a supplement to compensate for higher living costs, but it is not universal. The NHS has clear bands: Inner London receives 20% of basic salary (min £5,794, max £8,746 for 2026/27), Outer London 15%, and fringe areas 5%. However, many private sector employers do not offer any London weighting, or offer a flat amount that may be less than the NHS rates. When evaluating a job offer, always ask whether the quoted salary includes London weighting and what the supplement is.

What Does “Good Salary” Really Mean?

Based on ONS data, a full-time salary above the median of £39,039 is above average. But a “good” salary also depends on your personal circumstances: a £30,000 salary may be comfortable in a low-cost area but challenging in London. The National Living Wage for those aged 21+ was £12.21 per hour in April 2025 (rising to £12.71 for 2026/27), so a full-time worker on NLW earns around £23,800–£24,800 gross per year. Anything significantly above this is likely to be considered decent, but professional roles typically start higher.

For more detailed benchmarks, explore our salary data page, which breaks down earnings by occupation and region.

How to Use Hourly Rates Realistically

When comparing job offers or negotiating a raise, use the following steps:

1. Confirm your contracted hours – Most full-time roles are 37.5 or 40 hours per week.
2. Ask about overtime – Is it paid? At what rate? Is it guaranteed?
3. Check for allowances – London weighting, shift premiums, on-call pay, etc.
4. Use a reliable calculator – Our Hourly to Salary tool lets you input your hours and see gross and estimated net pay.

Remember that your take-home pay will be reduced by Income Tax, National Insurance, pension contributions, and possibly student loan repayments. The personal allowance for 2026/27 is £12,570, meaning you pay no tax on the first £12,570 of earnings.

Final Thoughts

Understanding what is a good salary in the UK requires looking beyond a single headline figure. By debunking common myths about hourly pay and overtime, you can make more informed career decisions. Always refer to official sources like ONS ASHE, GOV.UK, and your own employment contract for accurate figures.

Frequently Asked Questions

How do I convert my hourly rate to an annual salary?

Multiply your hourly rate by your contracted hours per week, then by 52 weeks. For example, £20 per hour × 37.5 hours × 52 weeks = £39,000 gross per year. However, this assumes you work every week of the year with no unpaid leave. Many full-time roles use 37.5 or 40 hours; check your contract. Overtime, bonuses, and shift premiums are not included in this basic conversion. Use our Hourly to Salary tool for a quick estimate.

Is overtime included in my annual salary?

No, overtime is typically paid separately and not included in your base annual salary. Some roles (especially salaried professional positions) may not pay overtime at all, while others pay at a higher rate (e.g., time-and-a-half). Always check your employment contract. The ONS ASHE figures for median hourly earnings exclude overtime, so your actual take-home may be higher if you regularly work extra hours.

What is London weighting and how does it affect my salary?

London weighting is an additional payment to compensate for higher living costs in London. It is not automatically applied to all London jobs. For NHS staff in 2026/27, Inner London receives 20% of basic salary (min £5,794, max £8,746), Outer London 15% (min £4,870, max £6,137), and fringe areas 5% (min £1,346, max £2,270). Other sectors may offer different amounts or none at all. When comparing job offers, check whether London weighting is included in the quoted salary.