£16 Per Hour — Annual Salary & Take Home Pay
£16 per hour is £31,200 per year (based on 37.5 hours/week). In the 2026-27 tax year, after income tax and National Insurance, your take-home pay is £2,165.3 per month or £25,983.6 per year.
If you earn £16 per hour and work a standard 37.5 hours per week, your annual salary is £31,200. Here's what that looks like after tax and National Insurance:
| Period | Gross | Take Home |
|---|---|---|
| Hourly | £16.00 | £13.32 |
| Daily (7.5h) | £120.00 | £99.94 |
| Weekly (37.5h) | £600 | £499.68 |
| Monthly | £2,600 | £2,165.3 |
| Annual | £31,200 | £25,983.6 |
Tax and NI on £31,200
On an annual salary of £31,200, your deductions are:
- Income tax: £3,726 (£310.5/month)
- National Insurance: £1,490.4 (£124.2/month)
- Total deductions: £5,216.4 per year
How £16/hour compares
The UK median hourly pay is approximately £17.93/hour (based on a £34,963 median salary). At £16/hour, you are below the median. The National Living Wage is £12.21/hour (£23,809.5/year).
Hourly rate comparison
| Hourly rate | Annual salary | Monthly take home | Annual take home |
|---|---|---|---|
| £14 | £27,300 | £1,931.3 | £23,175.6 |
| £15 | £29,250 | £2,048.3 | £24,579.6 |
| £17 | £33,150 | £2,282.3 | £27,387.6 |
| £18 | £35,100 | £2,399.3 | £28,791.6 |
Related calculations
- Full £31,000 salary breakdown — detailed tax bands and deductions
- Take home pay on £32,000 — monthly, weekly, and daily take home
- UK Salary Tax Table — take-home pay for every salary level
Frequently asked questions
What is £16 an hour annually?
At £16 per hour working 37.5 hours per week, your annual salary is £31,200 before tax.
How much is £16 an hour after tax?
After income tax and National Insurance, £16/hour gives you £2,165.3 per month or £25,983.6 per year take-home pay in 2026-27.
Is £16 an hour a good wage in the UK?
The National Living Wage for 2025/26 is £12.21/hour. At £16/hour, you earn above the minimum wage but below the UK median of ~£17.93/hour.
How many hours is a full-time week in the UK?
A standard full-time week in the UK is 37.5 hours (7.5 hours per day, 5 days per week). This means 1,950 working hours per year (52 weeks minus statutory holidays). At £16/hour, that's £31,200 per year before tax.
What is the tax-free hourly rate?
With a £12,570 personal allowance and 1,950 working hours, you can earn up to £6.45/hour before paying any income tax. Above that, the basic rate of 20% applies. National Insurance also starts at the same threshold, charged at 8% on earnings between £12,570 and £50,270.
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