£20.50 an hour is how much a year? (UK 2026/27)

At £20.50 an hour and 37.5 hours a week, you earn £39,975 a year, £32,302 after tax (£2,692 a month take-home) in 2026/27.

£20.50/hour by weekly hours

Hours/weekYearly grossAfter taxMonthly take-home
35£37,310£30,383£2,532
37.5£39,975£32,302£2,692
40£42,640£34,220£2,852
45£47,970£38,058£3,172

£20.50/hour by pay period (37.5-hour week)

PeriodGrossAfter tax
Week£768.75£621.18
Month£3,331£2,692
Year£39,975£32,302

Set your own hours and paid weeks in the hourly wage calculator, or see the full breakdown for £40,000 after tax.

Overtime and extra hours at £20.50

RatePer hourPer extra weekly hour, per year
Standard (1×)£20.50£1,066
Time and a half (1.5×)£30.75£1,599
Double time (2×)£41.00£2,132

Extra hours are taxed at your marginal rate, not your average rate, so the take-home from overtime is lower than your usual hourly net, but overtime never pushes the tax on your existing pay higher.

Nearby rates

Frequently asked questions

What is £20.50 an hour after tax?

About £16.56 per hour after deductions at 37.5 hours a week, your gross rate of £20.50 minus the average deduction rate at this income.

Is £20.50 an hour above minimum wage?

The National Living Wage (21 and over) is £12.71 an hour from 1 April 2026, so £20.50 is at or above it. For 18 to 20 year olds the minimum is £10.85, for 16 and 17 year olds and apprentices £8.00.

What assumptions do the after-tax figures use?

Tax year 2026/27, England/Wales/NI, tax code 1257L, no student loan or pension. See the UK methodology.

Last updated 2026-11-04.