Calculate weekly and monthly pay from an annual salary
Work out gross pay from hourly rates and hours worked
Calculate overtime pay at time and a half or double time
Understand deductions and calculate net (take-home) pay
Real-World Applications
Job offers: Salaries are quoted annually but paid monthly or weekly — converting between them lets you compare job offers accurately.
Payslips: Every payslip shows gross pay, deductions (tax, National Insurance, pension) and net pay. Understanding these figures is an essential life skill.
Overtime: Many workers earn extra at time and a half or double time. Calculating this correctly prevents underpayment.
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A salary is a fixed annual (yearly) amount paid in equal monthly or weekly instalments. An hourly rate means pay depends on hours worked. You must be able to convert between annual, monthly and weekly pay.
Example 1 — Annual salary to monthly and weekly pay
Amir earns an annual salary of £32,400. Calculate his monthly and weekly pay.
Step 1
Monthly pay = £32,400 ÷ 12 = £2,700 per month
Step 2
Weekly pay = £32,400 ÷ 52 = £623.08 per week (to the nearest penny)
Example 2 — Hourly rate to annual salary
Sara works 37 hours per week at £11.50 per hour. Calculate her annual salary.
Step 1
Weekly pay = 37 × £11.50 = £425.50
Step 2
Annual salary = £425.50 × 52 = £22,126 per year
Key fact: There are 52 weeks and 12 months in a year. Always convert from the annual figure directly — do not chain (weekly → monthly) as rounding errors build up.
✓ Quick Check 1 — Salary calculations and pay periods
Question 1 of 10
Overtime — Time and a Half, Double Time
When employees work overtime (beyond their contracted hours), they are usually paid at a higher rate. The most common overtime rates are time and a half (×1.5) and double time (×2).
Time and a half rate = basic rate × 1.5 | Double time rate = basic rate × 2
Example 3 — Basic pay plus overtime at time and a half
Leon's basic rate is £12 per hour. He works 35 basic hours and 4 hours overtime at time and a half. Calculate his total gross pay.
Step 1
Basic pay = 35 × £12 = £420
Step 2
Overtime rate = £12 × 1.5 = £18 per hour
Step 3
Overtime pay = 4 × £18 = £72
Step 4
Total gross pay = £420 + £72 = £492
Example 4 — Double time on a bank holiday
Amara earns £9.50 per hour. She works 6 hours on a bank holiday at double time. How much does she earn?
Step 1
Double time rate = £9.50 × 2 = £19 per hour
Step 2
Pay = 6 × £19 = £114
Common mistake: "Time and a half" means the rate is multiplied by 1.5 — NOT that you simply add half the hours. A rate of £10/hr at time and a half = £10 × 1.5 = £15/hr.
✓ Quick Check 2 — Overtime calculations
Question 1 of 10
Deductions and Net Pay
Gross pay is total pay before any deductions. Net pay (take-home pay) is what you actually receive after deductions such as income tax, National Insurance (NI) and pension contributions are removed.
Net pay = Gross pay − Income Tax − National Insurance − Pension (and any other deductions)
Example 5 — Calculate net pay from a payslip
Nina earns £28,800 per year. Each month her deductions are: Income Tax £188, National Insurance £107, Pension £120. Calculate her monthly net pay.
Step 1
Gross monthly pay = £28,800 ÷ 12 = £2,400
Step 2
Total deductions = £188 + £107 + £120 = £415
Step 3
Net pay = £2,400 − £415 = £1,985 per month
Example 6 — Finding gross pay when net pay is known
Marco's monthly net pay is £1,700. His deductions total £350. What is his gross monthly pay and annual salary?
Key terms:Gross pay = pay before any deductions. Net pay = pay after all deductions. Income Tax and National Insurance are compulsory deductions paid to HMRC. Pension contributions are often also deducted.
✓ Quick Check 3 — Deductions and net pay
Question 1 of 10
Practice: Wages and Salaries Calculations
Work out each answer and type it in (enter as a plain number, e.g. 2400 or 467.50).
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Question
Answer
Result
1
Annual salary £24,000 → monthly pay
2
Annual salary £39,000 → weekly pay
3
Basic rate £12/hr → time and a half rate
4
35 hrs at £11/hr + 5 hrs at time and a half → total pay
5
Gross pay £2,100, deductions £390 → net pay
6
Annual salary £30,000 → monthly pay
7
Annual salary £26,000 → weekly pay
8
Basic rate £10/hr → double time rate
9
40 hrs at £9/hr + 3 hrs at double time → total pay
10
Gross pay £1,800, deductions £310 → net pay
⚠ Things to Watch Out For
Annual ÷ 12 vs ÷ 52: Annual salary ÷ 12 = monthly pay. Annual ÷ 52 = weekly pay. These are different — don't use 12 to find weekly pay.
Overtime rate — multiplying hours by wrong amount: Time and a half = normal rate × 1.5. Double time = normal rate × 2. Multiply the RATE, not the total hours worked.
Gross vs net pay: Gross = total before deductions. Net = take-home pay after tax and NI. Questions may ask for either — read carefully.
Adding overtime hours to basic hours before multiplying: Basic: 35 hrs × £12 = £420. Overtime: 5 hrs × £18 = £90. Add AFTER calculating each separately: £420 + £90 = £510.
Not including all deductions: Net pay = Gross − Income Tax − National Insurance − (Pension if applicable). Missing any deduction gives a wrong net pay.