1. What is Net Hourly Pay?

Net Hourly Pay represents the actual amount you earn per hour after all deductions (tax, national insurance, student loan repayments, and pension contributions) have been subtracted from your gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your total annual salary before deductions
• Income Tax — Total annual income tax paid
• National Insurance — Total annual NI contributions
• Student Loan — Annual student loan repayments (if applicable)
• Pension Contributions — Annual pension contributions
• Hours per Week — Your typical weekly working hours
• 52 — Number of weeks in a year

3. Importance of Calculating Hourly Pay

Details: Understanding your net hourly rate helps with budgeting, comparing job offers, evaluating contract work, and assessing the true value of overtime or additional hours.

4. Using the Calculator

Tips: Enter all values in GBP. For most full-time employees in the UK, standard working hours are 37.5-40 per week. Include all deductions for accurate results.

5. Frequently Asked Questions (FAQ)

Q1: Why calculate net rather than gross hourly pay?
A: Net hourly pay shows what you actually take home, which is more useful for personal financial planning than gross figures.

Q2: How accurate is this calculator?
A: It's accurate for the inputs provided. For precise calculations, use exact tax/NI figures from your payslips or HMRC.

Q3: Should I include employer pension contributions?
A: No, only include deductions from your salary (employee contributions).

Q4: What if my hours vary each week?
A: Use an average weekly hours figure for the most representative result.

Q5: Does this account for tax code changes?
A: No, you must input your actual annual tax amount as it appears on your payslips.