Hourly to Salary Conversion Guide: Compare Job Offers
Basic Conversion Formula
Hourly to annual: Hourly rate x hours per week x 52 weeks. For example, £15/hour x 37.5 hours x 52 = £29,250/year.
Annual to hourly: Annual salary / 52 / hours per week. For example, £35,000 / 52 / 37.5 = £17.95/hour.
Factor In Holidays
UK workers get at least 28 days paid holiday (5.6 weeks). If you're paid hourly, this means you're actually working 46.4 weeks, not 52. Adjust your calculation: £15/hour x 37.5 x 46.4 = £26,100 actual earning weeks. But you should still receive holiday pay, bringing total to the full 52 weeks.
Salaried vs Hourly: What's Better?
Salaried advantages: Predictable income, paid holidays and sick leave, pension contributions, career progression structure, easier to get a mortgage.
Hourly advantages: Paid for every hour worked (including overtime), flexibility, can earn more during busy periods, transparent compensation.
Comparing Job Offers
Don't just compare the headline number. Factor in: pension contributions (employer match can add 3-8%), bonus potential, healthcare/dental benefits, work-from-home savings (commuting costs £2,000-5,000/year), and the total package value.
Quick Reference
- £10/hour = £19,500/year
- £15/hour = £29,250/year
- £20/hour = £39,000/year
- £25/hour = £48,750/year
- £30/hour = £58,500/year
(Based on 37.5 hours/week, 52 weeks)
Related Calculators
Frequently Asked Questions
How do I convert hourly pay to annual salary?
Multiply your hourly rate by your weekly hours, then by 52. For example: £15/hour x 37.5 hours x 52 weeks = £29,250 per year.
Is it better to be paid hourly or salary?
Salary offers stability, paid holidays, sick pay, and pension contributions. Hourly pays for every hour worked including overtime. Compare the total package, not just the headline rate.