How the hourly to annual calculation works
Weekly pay is the hourly rate multiplied by the paid hours worked in the week. Annual pay is that weekly figure multiplied by the paid weeks in the year — 52 for a continuous full year, fewer for term-time or seasonal patterns. Monthly pay is the annual figure divided by twelve, not weekly pay multiplied by four: a month averages 4.333 weeks, so the four-week shortcut understates pay by about 8%.
Hourly vs salaried: what changes
A salaried employee is paid through their holiday, so their annual salary already covers the statutory 5.6 weeks. An hourly worker paid only for hours worked needs holiday handled separately — either banked and paid when leave is taken, or paid as a 12.07% rolled-up holiday pay uplift. Tick the holiday option above to see the difference across a year.
Turning an hourly rate into a client charge rate
For agencies, the annual figure is only the worker’s side of the equation. Employer National Insurance, pension and holiday pay sit on top before any margin. The charge rate calculator converts the same pay rate into a client charge out rate with those costs included.
Part-year and term-time patterns
Term-time work is usually 38–39 paid weeks. Set the paid weeks per year to match, and the annual figure drops accordingly — 30 hours a week at £12 over 39 weeks is £14,040 rather than £18,720. Part-year workers also fall inside the irregular-hours holiday pay rules, so the 12.07% accrual applies to the hours actually worked.