Pay & Rates

How to Calculate an Hourly Rate From a Salary

Knowing the hourly value of a salary helps you compare job offers, check minimum wage compliance and price overtime.

Time-Clocking — General guidance with linked official sources

Quick answer

Hourly rate = annual salary ÷ (weekly contracted hours × 52). For example, £30,000 ÷ (37.5 × 52 = 1,950) = £15.38 an hour, before tax.

Hourly Rate Calculator

Keep 52 for a salaried job with paid holiday.

Result

Hourly rate
£15.38
Daily (÷ 5 days)
£115.38
Weekly
£576.92
Monthly
£2,500.00

£30,000.00 ÷ (37.5 h × 52 weeks = 1,950 h) = £15.38 per hour, before tax and National Insurance. Paid holiday is included because salary covers it.

Worked examples

SalaryHours/weekHourly rate
£25,00037.5£12.82
£30,00037.5£15.38
£35,00040£16.83
£45,00037.5£23.08

Why divide by 52 weeks?

Salaries cover paid holiday, so the pay is spread over every week of the year. If you divide by hours actually worked (after leave), you get a higher "effective" rate — useful for comparing with contractor day rates, but not how payroll works.

For a day rate instead, use the daily rate calculator. Annual hours are explained in how many working hours are in a year.

Checking against the minimum wage

Salaried workers' pay must average at least the National Minimum Wage or National Living Wage for the hours they work, including unpaid overtime. Rates change every April — check the current figures on GOV.UK.

Frequently asked questions

What is £30,000 a year per hour?

£15.38 on a 37.5-hour week, or £14.42 on a 40-hour week.

Does this include tax?

No. It's a gross figure before Income Tax, National Insurance and pension deductions.

Sources and references

General information, not legal advice. Check your contract and GOV.UK for your situation.

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