National Minimum Wage Arrears Calculator 2026
Calculate if you have been underpaid the National Minimum or Living Wage and how much you are owed. HMRC enforces NMW — employers face 200% penalties on arrears.
National Minimum Wage Underpayment Calculator
Every worker is entitled to the National Minimum Wage or National Living Wage. If you were paid less, you can claim arrears back 6 years.
Frequently Asked Questions
What is the National Minimum Wage for 2026?
2025/26 rates: National Living Wage (21+): £12.21/hour. 18-20: £10.00/hour. Under 18: £7.55/hour. Apprentices (under 19 or in first year): £7.55/hour.
How far back can I claim NMW arrears?
HMRC can pursue underpayment arrears up to 6 years back through civil recovery. Employment tribunal claims must be made within 3 months of the last underpayment. Use an employment solicitor for tribunal claims.
What happens to employers who underpay NMW?
Employers must repay all arrears. HMRC also charges a 200% penalty on the arrears (reduced to 100% if paid within 14 days). For serious breaches, employers can be publicly 'named and shamed' by HMRC and face unlimited fines.
What counts toward the NMW?
Your basic pay must meet NMW. Deductions for uniform, tools, or accommodation can reduce effective hourly pay below NMW — this is illegal. Travel time, waiting time, and training time also count toward hours worked.
Does the NMW apply to self-employed workers?
No — NMW only applies to 'workers' (employees and most casual workers). Genuinely self-employed people are not covered. However, HMRC investigates cases where workers are wrongly classified as self-employed to avoid NMW.
Is the NMW different in Scotland, Wales, and Northern Ireland?
No — the National Minimum Wage and National Living Wage apply equally across the whole UK. There is no devolved minimum wage.
Can my employer give me time off instead of paying arrears?
No — NMW arrears must be paid in cash (or equivalent). An employer cannot substitute extra leave or other benefits for wages owed. Time off in lieu of overtime is only legal if the effective hourly rate still meets NMW.
What is the Real Living Wage?
The Real Living Wage (£12.60/hour, £13.85/hour in London for 2025) is a voluntary higher rate calculated by the Living Wage Foundation based on actual living costs. It is separate from the legal NMW/NLW minimum. Around 15,000 employers voluntarily pay it.