£16 an hour is how much a year?
At 37.5 hours a week, £16 an hour is £31,200.00 a year before tax. After income tax and National Insurance in 2026/27, you take home £2,165.30 a month. These figures assume England, Wales or Northern Ireland, with no pension or student loan.
Full-time and part-time hours
What £16 an hour comes to for different working weeks:
| Hours a week | Yearly pay | Take-home per month | Take-home per week |
|---|---|---|---|
| 16 hours | £13,312.00 | £1,092.02 | £252.00 |
| 20 hours | £16,640.00 | £1,291.70 | £298.08 |
| 25 hours | £20,800.00 | £1,541.30 | £355.68 |
| 30 hours | £24,960.00 | £1,790.90 | £413.28 |
| 35 hours | £29,120.00 | £2,040.50 | £470.88 |
| 37.5 hours | £31,200.00 | £2,165.30 | £499.68 |
| 40 hours | £33,280.00 | £2,290.10 | £528.48 |
These figures assume 52 paid weeks a year, including paid holiday. Under about 15 hours a week at this rate, you earn less than the £12,570 tax-free allowance, so no income tax is due.
How it's worked out at 37.5 hours
- Tax-free Personal Allowance: £12,570.
- Taxable income: £31,200 − £12,570 = £18,630.
- Basic rate (20%): £18,630.00 × 20% = £3,726.00.
- National Insurance: 8% of £18,630.00 (earnings between £12,570 and £50,270) = £1,490.40.
With a pension or student loan
Monthly take-home at 37.5 hours a week:
| Take-home per month | Change | |
|---|---|---|
| Income tax and NI only | £2,165.30 | - |
| 5% pension taken before tax | £2,061.30 | −£104.00 |
| 5% pension by salary sacrifice | £2,071.70 | −£93.60 |
| Plan 2 student loan | £2,151.69 | −£13.61 |
| Plan 5 student loan | £2,118.80 | −£46.50 |
| 5% pension and Plan 2 loan | £2,047.69 | −£117.61 |
Worth knowing
- That's £3.29 an hour above the 2026/27 National Living Wage of £12.71.
- Overtime is taxed in the same way as normal pay. In a month with a lot of overtime, more tax and National Insurance come off that payslip, because payroll works them out each pay period.
- In Scotland the same hours take home £2,167.21 a month, which is £1.91 more than in the rest of the UK.
- For pension and student loan figures on a similar salary, see £31,000 after tax.
Enter your own hours, pension or student loan.
Open in the calculatorOther hourly rates
All hourly rates · Salaries after tax
Sources: Income Tax rates, Scottish Income Tax, rates and thresholds for employers 2026 to 2027 (National Insurance and student loans) and National Minimum Wage rates, all on GOV.UK.