How hourly pay becomes annual salary
Gross annual salary is hourly rate multiplied by paid hours per week and paid weeks per year. Using 52 weeks assumes you continue to be paid during annual leave; contractors may need to use fewer billable weeks.
Salary and contractor rates are not directly equivalent
An employee salary may include paid holiday, pension contributions, sick pay and other benefits. A freelance or contract rate often needs to cover unpaid time, insurance, administration and gaps between projects.
Gross and net hourly pay
Gross hourly pay is before deductions. Estimated net hourly pay depends on Income Tax, National Insurance and other deductions, so two people on the same gross hourly rate can receive different take-home amounts.