£21 an hour is how much a year?
At 37.5 hours a week, £21 an hour is £40,950.00 a year before tax. After income tax and National Insurance in 2026/27, you take home £2,750.30 a month. These figures assume England, Wales or Northern Ireland, with no pension or student loan.
Full-time and part-time hours
What £21 an hour comes to for different working weeks:
| Hours a week | Yearly pay | Take-home per month | Take-home per week |
|---|---|---|---|
| 16 hours | £17,472.00 | £1,341.62 | £309.60 |
| 20 hours | £21,840.00 | £1,603.70 | £370.08 |
| 25 hours | £27,300.00 | £1,931.30 | £445.68 |
| 30 hours | £32,760.00 | £2,258.90 | £521.28 |
| 35 hours | £38,220.00 | £2,586.50 | £596.88 |
| 37.5 hours | £40,950.00 | £2,750.30 | £634.68 |
| 40 hours | £43,680.00 | £2,914.10 | £672.48 |
These figures assume 52 paid weeks a year, including paid holiday. Under about 11.5 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: £40,950 − £12,570 = £28,380.
- Basic rate (20%): £28,380.00 × 20% = £5,676.00.
- National Insurance: 8% of £28,380.00 (earnings between £12,570 and £50,270) = £2,270.40.
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 | £2,750.30 | - |
| 5% pension taken before tax | £2,613.80 | −£136.50 |
| 5% pension by salary sacrifice | £2,627.45 | −£122.85 |
| Plan 2 student loan | £2,663.56 | −£86.74 |
| Plan 5 student loan | £2,630.68 | −£119.62 |
| 5% pension and Plan 2 loan | £2,527.06 | −£223.24 |
Worth knowing
- That's £8.29 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 £2,744.09 a month, which is £6.21 less than in the rest of the UK.
- For pension and student loan figures on a similar salary, see £41,000 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.