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£21 an Hour Is How Much a Year?

£21/hour on a 37.5-hour week, before tax
£40,950 / year
£3,413/month · £788/week · £43,680/year on a 40-hour week

The UK’s most common full-time week is 37.5 hours (9-to-5 with a lunch break), which makes the conversion hourly rate × 1,950. A true 40-hour contract earns £43,680 instead. Unlike hourly work in some countries, UK employees are paid for their statutory holiday weeks, so the 52-week figure is the right one for comparing against salaried offers.

Part-time: £21/hour at fewer hours

Hours / weekPer weekPer monthPer year
16£336£1,456£17,472
20£420£1,820£21,840
25£525£2,275£27,300
30£630£2,730£32,760
37.5£788£3,413£40,950
40£840£3,640£43,680

After tax: what £21/hour actually pays

On £40,950 a year in 2026-27 (England, Wales or Northern Ireland, standard 1257L code, no student loan or pension), deductions are about £5,676 income tax and £2,270 employee National Insurance. That leaves roughly £33,004 a year — £2,750 a month, an effective deduction rate of 19.4%, and a true take-home of about £16.92 per hour worked. Scotland’s bands differ. See the full breakdown at £40,000 take-home, or add your student loan plan and pension with the UK Income Tax Calculator.

Rises and overtime at £21/hour

A £1/hour rise is £1,950 a year at 37.5 hours, of which you keep roughly £1,404 after tax and NI — only the new pounds are taxed at your marginal rate, so a rise never makes existing pay worse. On overtime, the UK has no statutory premium — time-and-a-half is contract, not law — so the number that matters is in your employment contract, with the National Minimum Wage as the only legal floor (current rates on GOV.UK).

Keep going: convert any rate with the UK hourly to salary converter, get your exact take-home with the UK Income Tax Calculator, or decode every payslip line with how to read your UK payslip.

Frequently asked questions

£21 an hour is how much a year?

On the most common UK full-time week of 37.5 hours, £21 per hour is £40,950 a year (52 weeks). On a 40-hour week it is £43,680. Paid holiday is included in these figures because UK employees are paid for leave weeks.

£21 an hour is how much a month?

About £3,413 per month before deductions (£40,950 ÷ 12) at 37.5 hours a week, or £788 per week and roughly £158 per 7.5-hour day.

How much is £21 an hour after tax?

In 2026-27, on £40,950 a year (England/Wales/NI, standard tax code, no student loan or pension), deductions are about £5,676 income tax and £2,270 National Insurance, leaving roughly £33,004 a year — £2,750 a month, an effective rate of 19.4%, and a true take-home of about £16.92 per hour worked.

What does a £1/hour rise from £21 actually add?

One more pound per hour is £1,950 more per year at 37.5 hours. After income tax and National Insurance you keep roughly £1,404 of it (2026-27, standard assumptions). Only the new pounds are taxed at your marginal rate — a rise never increases the tax on pay you already earn.

Is overtime paid extra in the UK?

Unlike the US, the UK has no statutory overtime premium — overtime pay is whatever your contract says, and some salaried roles pay none. The only legal floor is that average pay must not fall below the National Minimum Wage; check your contract for the actual overtime rate.

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Gross figures are exact arithmetic on the stated hours. Take-home estimates use 2026-27 rates for England/Wales/NI with the standard Personal Allowance and no student loan, pension, or benefits in kind; Scottish rates differ. Not tax advice.