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2025/26 Tax Year

£16 Per Hour - UK Salary After Tax

If you earn £16 per hour working 37.5 hours per week, your annual salary is £31,200. After tax, you'll take home £2,165.30 per month.

Hourly Rate
£16
per hour
Annual Salary
£31,200
gross per year
Monthly Take-Home
£2,165.30
after tax
Yearly Take-Home
£25,984
after tax

Above Average Earnings

£16.00/hour puts you above the UK median. This provides comfortable living in most regions and good savings potential.

  • Maximize pension contributions - you get 20% tax relief
  • Consider ISA investments (£20k annual allowance)
  • Review insurance needs (income protection, life insurance)
  • Start thinking about property if not already owned

How £16/Hour Compares

UK wage benchmarks for 2025/26

vs Minimum Wage
+40%
£11.44/hr (21+)
vs Living Wage
+33%
£12/hr (Real Living Wage)
vs UK Median
+7%
15/hr median
vs London Living Wage
+22%
£13.15/hr (London)

Customise Your Hours

Enter Your Hourly Rate

Calculate your annual salary for 2025/26

£/hour

Use 52 for full year including paid holiday

Your Take-Home Pay

£16 × 37.5hrs × 52 weeks

£31,200
Annual Gross Salary
Monthly Take-Home
£2,165.30
Yearly Take-Home
£25,984
Income Tax-£3,726/yr
National Insurance-£1,490/yr
Total Deductions-£5,216/yr
Effective Hourly Rate
After tax and NI
£13.32/hr

What £2,165.30/Month Affords

Affordability based on your take-home pay

Average UK rent (1-bed)
~£900-1,200/month outside London
Affordable
London rent (1-bed)
~£1,600-2,000/month average
Challenging
Running a car
~£300-500/month all-in costs
Affordable
Saving 10% of income
~£216.53/month
Affordable
Family with children
Childcare adds £800-1,500/month
Challenging

Jobs Around £16/Hour

Typical roles at this pay level

Skilled trades
Nurse (entry)
Paralegal
Marketing coordinator

£16/Hour Salary Breakdown

DescriptionYearlyMonthly
Gross Salary£31,200£2,600.00
Personal Allowance£12,570£1,047.50
Income Tax-£3,726-£310.50
National Insurance-£1,490-£124.20
Take Home Pay£25,984£2,165.30

* Based on 37.5 hours per week, 52 weeks per year. Tax rates for 2025/26.

£16/Hour at Different Hours Per Week

See how your take-home pay changes based on hours worked

Hours/WeekAnnual SalaryMonthly Net
20 hours £16,640£1,291.70
30 hours £24,960£1,790.90
35 hours £29,120£2,040.50
37.5 hours (standard)£31,200£2,165.30
40 hours £33,280£2,290.10

Understanding £16 Per Hour Salary

Earning £16 per hour in the UK translates to an annual salary of £31,200 when working full-time (37.5 hours per week, 52 weeks per year). After Income Tax and National Insurance deductions for the 2025/26 tax year, your take-home pay is £25,984 per year or £2,165.30 per month.

This hourly rate is above the UK median hourly wage of approximately £15/hour and above the National Minimum Wage of £11.44/hour for workers aged 21 and over. Your effective tax rate at this income level is 16.7%.

If you work part-time or different hours, use the calculator above to see your personalized take-home pay. You can also explore our salary calculator for more detailed breakdowns including pension contributions and student loan repayments.