Updated for the current tax year (6 April 2024 to 5 April 2025)
How To Use The Hourly Wage Calculator
- Enter your income and specify whether it is an annual or monthly figure.
- Choose employment status. This step is important because it informs the calculator about which National Insurance and/or tax rates to apply.
- Click the 'Calculate' button once you're done, and you'll see your net and gross hourly rate.
Note: We will update this calculator in January with the new National Insurance rates
To calculate the net hourly rate, we consider the following rates:
National Insurance Rates
Employed
If you are employed, you will pay Class 1 National Insurance contributions. The rates below are the most common for most employees:
- For salaries ranging from £242 to £967 per week (£1,048 to £4,189 per month), the Class 1 rate is 8%.
- For salaries exceeding £967 per week (more than £4,189 per month), the Class 1 rate is 2%.
Self Employed
If you are self-employed, you will pay Class 4 National Insurance contributions.
- On profits between £12,570 and £50,270 the rate is 6%.
- On profits over £50,270 the rate is 2%.
Note: Class 2 National Insurance is now voluntary if have profits of less than £6,725 per year.
Tax Rates (England)
| Band | Taxable income | Tax rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | over £125,140 | 45% |
Popular Salary Calculations:
Disclaimer: Although the calculations are quite accurate, please use the provided information for illustrative purposes only. Do not make any major financial decisions without consulting a qualified specialist.