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2026/27 tax year · HMRC rates

£16 an hour a year

On a 37.5-hour week, £16 an hour is £31,200 a year before tax and £2,165 a month after Income Tax and National Insurance.

Before tax

£31,200

a year · £2,600 a month · £600 a week

After tax

£2,165

a month · £25,984 a year · £500 a week

37.5 hours a week, paid for 52 weeks (paid holiday included). You keep about £13.32 of each hour.

£16 an hour at different hours

England, Wales and Northern Ireland rates, no pension or student loan.

Hours a weekA year before taxA month after taxA week after tax
16 £13,312 £1,092 £252
20 £16,640 £1,292 £298
25 £20,800 £1,541 £356
30 £24,960 £1,791 £413
35 £29,120 £2,041 £471
37.5 £31,200 £2,165 £500
40 £33,280 £2,290 £528
45 £37,440 £2,540 £586

The tax on £16 an hour, full-time

  • Income Tax: £3,726 a year, £311 a month, after the £12,570 Personal Allowance.
  • National Insurance: £1,490 a year, 8% of earnings above £12,570.
  • In Scotland, take-home pay is £2,167 a month — £23 a year more, because Scotland sets its own Income Tax bands.

£16 and the minimum wage

£16 is £3.29 an hour more than the National Living Wage of £12.71 — 26% above it, or £6,416 a year on a 37.5-hour week.

Legal minimum from April 2026An hourA year, 37.5 h/week
National Living Wage (21 and over) £12.71 £24,785
18 to 20 £10.85 £21,158
Under 18 and apprentices £8.00 £15,600

Source: GOV.UK, National Minimum Wage and National Living Wage rates.

How £16 an hour compares

£16 is more than about 32% of full-time employees in the UK earn an hour, excluding overtime. The full-time median is £19.67 an hour. Source: ONS Annual Survey of Hours and Earnings, 2025-provisional.

Jobs where the typical full-time hourly rate is close to £16

Median hourly pay excluding overtime, full-time employees, ONS ASHE 2025-provisional.

Questions about £16 an hour

How much is £16 an hour a year?

On a 37.5-hour week, £16 an hour is £31,200 a year before tax (37.5 hours × 52 weeks), £2,600 a month or £600 a week.

How much is £16 an hour after tax?

About £25,984 a year, £2,165 a month or £500 a week in the 2026/27 tax year, after £3,726 Income Tax and £1,490 National Insurance — £13.32 for each hour worked. That assumes full-time hours, no pension contributions and no student loan, in England, Wales or Northern Ireland.

Is £16 an hour above the minimum wage?

£16 is £3.29 an hour more than the National Living Wage of £12.71 — 26% above it, or £6,416 a year on a 37.5-hour week.

How much is £16 an hour part-time?

On 20 hours a week it comes to £16,640 a year before tax and £1,292 a month after; on 30 hours, £24,960 a year and £1,791 a month.

Is £16 an hour a good wage in the UK?

£16 is more than about 32% of full-time employees in the UK earn an hour, excluding overtime. Source: ONS Annual Survey of Hours and Earnings (2025-provisional). The full-time median is £19.67 an hour.