Salary Calculator

Standard Working Year in the UK

A standard UK full-time employee works 37.5–40 hours per week, 52 weeks per year, minus 5.6 weeks statutory holiday (28 days including bank holidays) = approximately 46–47 working weeks per year. This gives approximately 1,748–1,880 working hours per year. Day rate calculation: annual salary ÷ 260 working days (52 weeks × 5 days) is the most common method. Some industries use 230 days (allowing for holidays) or 250 days.

Freelance and Contract Day Rates

Converting an employment salary to a freelance day rate requires adding overhead costs that an employer normally covers: employer NI (13.8%), pension contribution (typically 3–10%), holiday pay (12.07% of pay for 28-day entitlement), sick pay, equipment, and professional insurance. A common rule of thumb for freelancers: multiply your equivalent salary day rate by 1.35–1.5 to cover these costs. A £35,000 salary equivalent day rate of £154 should be charged at £208–231 as a freelancer to achieve

National Living Wage 2026/27

The UK National Living Wage (for workers 21+) is £11.44 per hour from April 2024. For 37.5 hours per week over 47 working weeks, this equals approximately £20,161 per year. The National Minimum Wage for 18–20 year olds is £8.60/hour; for under-18s, £6.40/hour; for apprentices in their first year, £6.40/hour. Employers must pay at least these rates — being paid below them is illegal and can be reported to HMRC's Pay and Work Rights helpline.

Comparing Job Offers

When comparing job offers with different structures, convert all to an annual equivalent using the same working-hours assumption. Consider total remuneration beyond base salary: pension contribution (5% employer match on £35,000 = £1,750/year), private health insurance (£500–1,500/year), life assurance (usually 2–4× salary), cycle-to-work scheme, and any performance bonus (should be treated as uncertain, not guaranteed). A £35,000 offer with 8% pension, health insurance, and 10% bonus target is