Breakdown
How it works
Annual = hourly × hours per week × paid weeks (52 for salaried staff, since holiday is paid). Pro-rata = full-time salary × your hours ÷ full-time hours. Daily rate for contractors is usually annual ÷ 220–230 working days, not ÷ 260, to allow for holidays.
Formula
Worked example
£15 an hour × 37.5 × 52 = £29,250 a year, £2,437 a month. A £40,000 FTE job at 3 days (22.5 hours) = £24,000.
Frequently asked questions
What is the UK minimum wage in 2026/27?
National Living Wage (21+) £12.71 an hour from April 2026; 18–20 rate £10.85; under-18 and apprentice £8.00. On 37.5 hours that is £24,784 a year for the NLW.
How many working hours are in a year?
37.5 × 52 = 1,950; 40 × 52 = 2,080. Actual hours worked after 28 days' leave and bank holidays: about 1,740 on a 37.5-hour week.
How do I compare a contractor day rate to a salary?
Day rate × 220 ≈ gross contract income, then deduct employer costs you now carry (NI, pension, holidays, sick pay, insurance) — roughly 25–30%. £500 a day ≈ £80,000 salary equivalent.