How to Convert Annual Salary to Hourly Rate

To convert an annual salary to an hourly rate: divide the annual salary by the number of working weeks, then divide by the hours worked per week. With 37.5 hours per week and 28 days holiday, there are approximately 227 working days per year.

UK Standard Working Hours

The standard working week in the UK is 37.5 to 40 hours. By law, workers cannot be required to work more than 48 hours per week on average (under the Working Time Regulations), unless they opt out in writing.

Holiday Entitlement

The statutory minimum holiday entitlement in the UK is 28 days per year (including bank holidays) for full-time workers. Many employers offer more than this minimum. Part-time workers get a pro-rata equivalent.

Day Rate Calculation

Contractors and freelancers often work on a day rate basis. A day rate is calculated by dividing the annual salary by the number of working days. Contractors typically charge a premium over their employed equivalent to account for holidays, pensions and employer NI they cover themselves.