£16 per hour annual salary UK: take-home pay, regional and seniority context

£16 per hour annual salary UK: gross and take-home

Earning £16 per hour on a full-time contract of 37.5 hours per week gives a gross annual salary of £31,200. After deducting Income Tax and employee National Insurance, you take home about £25,984 per year – that’s £2,165 per month or roughly £500 per week. At 40 hours per week, the gross rises to £33,280 and take-home to £27,481 per year.

These figures use the 2026/27 tax year, the standard 1257L tax code, and England/Wales/Northern Ireland bands. If you work in Scotland, the starter rate of 19% on the first £3,967 of taxable income reduces your tax bill slightly – around £40 less per year at this salary.

How £16 per hour compares to UK benchmarks

The National Living Wage for workers aged 21 and over from April 2026 is £12.71 per hour. At 37.5 hours, that gives £24,785 gross and about £21,364 take-home. Earning £16 means you are £3.29 above the legal minimum, and your take-home is about £4,600 more per year than someone on the NLW.

Against the UK median, the picture is different. The median hourly pay for full-time employees is roughly £19.67, according to ONS data, which translates to an annual gross of about £39,039. At £16 per hour you are about 19% below the median, placing you near the 48th–50th percentile of earners – very close to the middle of the income distribution.

For context, the London Living Wage (a voluntary rate) is £14.80 per hour in 2026. Your £16 exceeds that, but in London the cost of living is higher, and many roles pay above the London Living Wage. Outside London, £16 is a solid wage that sits above entry-level roles like care worker (typically around £24,000) or retail assistant (around £23,000), but below professions such as registered nurse (NHS £36,000) or classroom teacher (£40,000).

Regional and seniority differences

While the search results do not provide detailed regional pay breakdowns for £16 per hour, the comparison with the London Living Wage and national median gives a useful guide. In high-cost areas like London and the South East, £16 may be considered a moderate wage, while in lower-cost regions it can offer a comfortable living.

Seniority matters too. In sectors such as social care, retail, or hospitality, £16 per hour often represents a senior or supervisory role. For example, a senior care worker or a retail supervisor might earn around this level. In skilled trades like HGV driving (typical £32,000) or administrative roles, £16 is close to the going rate for experienced staff. By contrast, in professional fields like accounting (£42,000) or software development (~£55,000), £16 would be an entry-level or junior rate.

Take-home pay breakdown

Here is how the deductions work on a £31,200 salary (37.5 hours, England, no pension or student loan):

• Personal Allowance: £12,570 tax-free
• Taxable income: £18,630
• Income Tax at 20%: £3,726
• National Insurance at 8%: £1,490
• Net annual take-home: £25,984

If you contribute to a workplace pension via auto-enrolment, a 5% employee contribution would be £1,560 per year. After 20% tax relief, the net cost to you is about £1,248, reducing monthly take-home to roughly £2,061. Your employer adds 3% (£936) into the pension.

Student loan repayments also affect take-home. At £31,200, the amounts are:

• Plan 1: £387/year (£32.25/month)
• Plan 2: £163/year (£13.58/month)
• Plan 5: £558/year (£46.50/month)
• Postgraduate Loan: £612/year (£51.00/month)

Scotland note

If you live in Scotland, Income Tax bands differ slightly. The starter rate of 19% applies to the first £3,967 of taxable income (instead of 20%), saving you about £40 per year at this salary. Your monthly take-home would be around £2,168 instead of £2,165.

Summary

£16 per hour annual salary UK works out to £31,200 gross and roughly £25,984 take-home for a 37.5-hour week. It is well above the National Living Wage but below the UK median. Your actual take-home depends on your hours, tax code, pension, student loans, and whether you are in Scotland. For a detailed personal calculation, use our take-home calculator. For more context on how different salaries compare, see our salary articles.

Frequently Asked Questions

What is £16 per hour annual salary UK after tax?

At a standard 37.5-hour week, £16 per hour gives a gross annual salary of £31,200. After deducting Income Tax (20% on earnings above £12,570) and National Insurance (8% on the same band), the take-home pay is approximately £25,984 per year, or £2,165 per month. This assumes the 2026/27 tax year, England/Wales bands, and no pension or student loan.

How does £16 per hour compare to the National Living Wage and median earnings?

The National Living Wage for workers aged 21+ from April 2026 is £12.71 per hour, so £16 is £3.29 above that. The UK median hourly pay is about £19.67, meaning £16 is roughly 19% below the median. At £31,200 per year, you sit near the 48th–50th percentile of UK earners – close to the middle of the income distribution.

What is the take-home pay if I have a student loan or contribute to a pension?

If you have a Plan 2 student loan, you would repay about £163 per year (£13.58 per month) at this salary, reducing monthly take-home to about £2,151. For a 5% auto-enrolment pension contribution, the net cost after 20% tax relief is roughly £104 per month, leaving take-home around £2,061 per month. Different loan plans (Plan 1, Plan 5, Postgraduate) have different thresholds and repayment amounts.