£16 an hour is how much a year?
A year before tax
£31,200
At £16 an hour for 37.5 hours a week, you earn £31,200 a year before tax, or £2,600 a month.
Calculators
Hourly pay
What an hourly rate comes to a week, a month and a year.
e.g. £15 an hourPro rata
Your salary for part-time hours, and what you take home from it.
Working 37.5 hours a week for £16 an hour gives a gross salary of £31,200. Weekly pay is a round £600, and monthly pay is £2,600. After income tax and National Insurance, the take-home in England is £25,985.40 a year and £2,165.45 a month.
| Hours a week | A week | A month | A year |
|---|---|---|---|
| 20 | £320.00 | £1,386.67 | £16,640.00 |
| 35 | £560.00 | £2,426.67 | £29,120.00 |
| 37.5 | £600.00 | £2,600.00 | £31,200.00 |
| 40 | £640.00 | £2,773.33 | £33,280.00 |
| Pay period | England, Wales and Northern Ireland | Scotland |
|---|---|---|
| A year | £25,985.40 | £26,008.42 |
| A month | £2,165.45 | £2,167.37 |
| A week | £499.72 | £500.16 |
How the yearly figure for £16 is made
Multiply £16 by 37.5 hours to get the weekly pay, then by the weeks in the year to get the annual figure of £31,200. The page for a pound less an hour reaches the same yearly total on a 40 hours week, which shows how much the length of the week matters.
On 40 hours at £16, the yearly pay is £33,280 and take-home is £27,483. On a 20 hours week the pay is £16,640, which puts only a few thousand pounds above the personal allowance of £12,570.
The tax bill on £16 an hour
A full-time worker in England on £16 pays £3,724.20 in income tax over the year, all at the basic rate. Employee National Insurance adds £1,490.40. Together they take about a sixth of the gross pay.
The employer pays its own National Insurance on top of the wage, and that cost does not come out of the £25,985.40 figure. The salary after tax page for the nearest round figure lists the employer's share and what each student loan plan would take from the same pay.
Scottish take-home at £16 an hour
In Scotland the take-home at 37.5 hours is £26,008.42. Scottish workers on this rate pay the starter rate on the first slice of taxed pay and the intermediate rate of 21% on the top slice. The two nearly cancel out here, so Scots keep only slightly more over the year than workers in England.
Questions
What is £16 an hour per year?
A 37.5 hours week at £16 an hour is £31,200 per year before tax. For a 40 hours week the answer is £33,280, and for 20 hours a week it is £16,640.
How much is £16 an hour after tax?
The yearly take-home in England, Wales and Northern Ireland is £25,985.40 on a 37.5 hours week. That is £2,165.45 a month, with no pension or student loan taken off.
Does the employer pay more than £16 an hour?
Yes. On top of the wage, the employer pays employer National Insurance of £3,930 a year on a full-time salary at this rate, plus any pension contribution. None of that reduces your pay.
Nearby rates
The main figures assume 37.5 hours a week and 52 paid weeks, including paid holiday. They are whole-year estimates for 2026/27, with category A National Insurance and a tax code based on the allowance available at this income. No pension or student loan is included. Scotland is shown separately from England, Wales and Northern Ireland. The full statutory Personal Allowance is £12,570. The tax code used for this estimate gives £12,579 of annual PAYE free pay, including any reduction in the allowance due to income. Your contract determines your paid hours and weeks. Annual totals and rounded monthly or weekly figures can differ by pennies.