What Will My Take Home Pay Be? Comparing Hourly Jobs with Salaried Offers

If you're weighing up an hourly job against a salaried position, the first question is often what will my take home pay be? The headline rate – whether it's £12.71 an hour or £39,039 a year – only tells part of the story. Tax, National Insurance, pension contributions, and overtime all change the amount that actually lands in your bank account.

This guide uses the latest official UK data to help you compare hourly and annual offers, convert between the two, and understand what your net pay is likely to be.

The UK Earnings Picture: ONS ASHE 2025

The Office for National Statistics' Annual Survey of Hours and Earnings (ASHE) provides the most reliable benchmark. For April 2025, median gross annual earnings for full-time employees were £39,039, up 4.3% from £37,439 the year before. Median hourly earnings (excluding overtime) were £19.67 per hour. These figures are for employees who have been in their job for at least a year.

If you work a standard 37.5-hour week, £19.67 an hour works out at roughly £38,356 a year – close to the median. But many jobs pay more or less, and your take-home pay depends on your personal circumstances.

Converting Hourly to Annual: The Simple Rule

To turn an hourly rate into an annual salary, use this formula:

Annual gross pay = hourly rate × hours per week × 52

For a 37.5-hour week (common in many office and public sector roles):

• £12.71/hour (National Living Wage 2026) → £24,784.50/year
• £15.00/hour → £29,250/year
• £20.00/hour → £39,000/year
• £25.00/hour → £48,750/year
• £30.00/hour → £58,500/year

Some contracts use 40 hours or 35 hours; adjust accordingly. A few payrolls use 52.14 weeks (the exact number in a year), which adds about 0.3% to the annual total – a small difference but worth noting.

What Will My Take Home Pay Be After Tax and NI?

Gross pay is not what you take home. For the 2026/27 tax year, the standard Personal Allowance is £12,570, meaning you pay no Income Tax on the first £12,570 of earnings. Above that, you pay 20% up to £50,270, then 40% on earnings above that. National Insurance (Class 1) is 8% on earnings between £12,570 and £50,270, then 2% above.

Using a 37.5-hour week and no other deductions, typical net take-home pay for common hourly rates is:

Hourly rate	Gross annual	Net annual (approx.)	Net monthly (approx.)
£12.71	£24,785	£21,365	£1,780
£15.00	£29,250	£24,580	£2,048
£20.00	£39,000	£31,600	£2,633
£25.00	£48,750	£38,620	£3,218
£30.00	£58,500	£44,488	£3,707

These figures assume the standard 1257L tax code, no pension contributions, and no student loan. If you have a pension (auto-enrolment takes at least 5% of qualifying earnings) or a student loan (Plan 2 or Plan 5 deducts 9% above the threshold), your take-home pay will be lower.

Hourly Jobs vs Salaried Offers: What to Watch For

When comparing an hourly job with a salaried one, look beyond the headline figure:

• Overtime: Hourly jobs often pay overtime at 1.5× or 2× the base rate. Salaried roles may expect unpaid extra hours. If you regularly work overtime, an hourly job can out-earn a seemingly higher salary.
• Holiday pay: Some hourly contracts include rolled-up holiday pay (an extra 12.07% on top of your hourly rate). Others pay holiday separately. Check which applies – it affects your effective hourly rate.
• London weighting: Public sector and many private employers add a London allowance (e.g. £4,000–£6,000 for teachers). This boosts gross pay but also pushes you into higher tax bands.
• Pension: Salaried jobs often have better employer pension contributions (e.g. 20%+ in the NHS or civil service). Hourly roles may only offer the minimum 3% employer contribution.

Use our hourly calculator to see your exact take-home pay for different rates and hours.

National Living Wage and Minimum Wage 2026/27

From April 2026, the statutory minimum rates are:

• 21 and over (National Living Wage): £12.71 per hour
• 18–20: £10.85 per hour
• 16–17 and apprentices: £8.00 per hour

These are legal minimums. Many employers pay more, especially in sectors like retail, hospitality, and care. The voluntary Real Living Wage, set by the Living Wage Foundation, is £13.45 nationally and £14.80 in London – a better benchmark for a genuine living wage.

How to Compare a Salary Offer with an Hourly Rate

If you have a salary offer of £35,000 and an hourly offer of £18.00, which is better? Convert both to the same basis:

• £35,000 salary ÷ (37.5 hours × 52 weeks) = £17.95 per hour
• £18.00 hourly × 37.5 hours × 52 weeks = £35,100 per year

They are almost identical in gross pay. But the hourly job may pay overtime, while the salary may include better pension or holiday. Always compare take-home pay, not just gross.

For more detailed comparisons, see our salary articles on hourly vs salaried work.

Summary

When you ask what will my take home pay be, the answer depends on your hourly rate, hours, tax code, and deductions. Use the conversion rule (hourly × hours × 52) to get gross annual, then subtract tax and NI using current rates. Remember that overtime, London weighting, and pension contributions can tip the balance between an hourly job and a salaried one.

Check the latest salary data from ONS and GOV.UK for up-to-date benchmarks, and always read your contract carefully.