£16 Per Hour Is How Much a Year?

£16 an hour is £31,200 a year before tax (37.5 hrs/week). After tax you take home £2,165 a month.

£16/hour = Annual Salary
£31,200
gross per year (37.5 hours/week)
Take Home Yearly
£25,984
Take Home Monthly
£2,165
Take Home Weekly
£500
Take Home Daily
£100
Tax Breakdown
Gross salary (££16/hr × 37.5hrs × 52wks)£31,200
Income tax-£3,726
National Insurance-£1,490
Take home pay£25,984/yr (£2,165/mo)

£16 an Hour — Full Breakdown

If you earn £16 per hour and work a standard 37.5-hour week, your gross annual salary is £31,200. After income tax and National Insurance for 2025/26, your take home pay is £25,984 per year or £2,165 per month.

Is £16 Per Hour a Good Wage?

£16 per hour sits around or above the UK median hourly wage of £16.50 — meaning you are earning more than roughly half of all UK workers. This rate is 31% above the minimum wage. At this level you are comfortably above the Real Living Wage and should be able to cover rent, bills, and have some money left over in most UK cities. It is a typical rate for skilled workers, experienced administrators, and those with a few years in their field. To see how this compares to salaried roles, check the full £16/hr salary guide.

What Does £16/Hour Get You?

On a 37.5-hour week, £16/hr gives you £2,165 per month after tax and National Insurance (or £500 per week). Here is what that looks like in practice:

Your monthly take-home of £2,165 gives you workable options. Budget roughly £714 for rent (a modest flat outside London or a room in zone 3+), £260 for bills and council tax, and £325 for food. After about £216 for travel, that leaves around £650 per month. That is enough for small savings contributions and occasional treats, but a tight budget if you have dependents. Use our tax calculator to model different weekly hours.

Who Earns Around £16 Per Hour?

A wide range of skilled and semi-skilled roles pay around £16 per hour in the UK. Common positions include:

Salaries vary by location, employer, and experience. Use our take-home pay calculator to see your exact figures.

Moving Up from £16/Hour

From £16/hr, you are well-positioned to move into mid-level roles. Professional qualifications make the biggest difference at this stage: CIPD for HR, AAT/ACCA for accounting, PRINCE2 or Agile certifications for project management. In skilled trades, going self-employed or becoming a contractor can boost your effective rate by 30–50%. Management experience is also valuable — taking on team leader responsibilities, even informally, strengthens your CV for £22–28/hr roles. Healthcare workers should explore NHS band 6 positions, which typically pay £18–23/hr. See the jump to £25/hr: £25/hr salary breakdown.

Different hours or want to add student loans?

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Other Hourly Rates

See the full salary breakdown: £31,200 salary after tax