Uk Salary Calculator 2025/26 Hourly

Net Hourly Pay Formula:

\[ \text{Net Hourly Pay} = \frac{\text{Gross Pay} - \text{Income Tax} - \text{National Insurance} - \text{Student Loan} - \text{Pension Contributions}}{\text{Hours per Week} \times 52} \]

Gross Pay (GBP/year):

GBP

Income Tax (GBP):

GBP

National Insurance (GBP):

GBP

Student Loan (GBP):

GBP

Pension Contributions (GBP):

GBP

Hours per Week:

hours

Net Hourly Pay:

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1. What is Net Hourly Pay?

Net Hourly Pay represents your actual take-home earnings per hour after all deductions (taxes, national insurance, student loans, and pension contributions) have been subtracted from your gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

\[ \text{Net Hourly Pay} = \frac{\text{Gross Pay} - \text{Income Tax} - \text{National Insurance} - \text{Student Loan} - \text{Pension Contributions}}{\text{Hours per Week} \times 52} \]

Where:

Gross Pay — Annual salary before deductions
Income Tax — Total annual income tax
National Insurance — Total annual NI contributions
Student Loan — Annual student loan repayments
Pension Contributions — Annual pension contributions
Hours per Week — Weekly working hours
52 — Weeks in a year

Explanation: The formula calculates your true hourly earnings by accounting for all mandatory deductions and dividing by your annual working hours.

3. Importance of Calculating Hourly Pay

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

4. Using the Calculator

Tips: Enter all values in GBP/year except for hours per week. Use your latest payslip or tax documents for accurate figures. Hours per week should reflect your actual working hours including regular overtime.

5. Frequently Asked Questions (FAQ)

Q1: Why use 52 weeks instead of accounting for holidays?
A: The calculation assumes you're paid for all 52 weeks (including holiday pay). This gives your true hourly rate regardless of when you take time off.

Q2: Should I include employer pension contributions?
A: No, only include deductions from your salary. Employer contributions don't affect your take-home pay.

Q3: How accurate is this for irregular hours?
A: For variable hours, use your average weekly hours. For highly irregular work, consider calculating monthly instead.

Q4: Does this account for tax-free allowances?
A: Yes, indirectly - use your actual tax and NI amounts which already consider your personal allowance.

Q5: How does this compare to the Living Wage?
A: Compare your net hourly rate to the UK Living Wage (£12.00 in 2024/25) to assess your relative earnings.