Last updated: February 2026

Calculate Minimum Wage Earnings

Weekly Gross

£0.00

Monthly Gross

£0.00

Annual Gross

£0.00

Est. Take-Home

£0.00

Holiday Pay Value

£0.00

Overtime Value

£0.00

Income Tax

£0.00

National Insurance

£0.00

National Minimum Wage Rates April 2025 - March 2026 (Current)

The National Minimum Wage (NMW) and National Living Wage (NLW) rates were updated on 1 April 2025. The NLW increased by 6.7% to £12.21/hour, continuing the government's target to align with two-thirds of median earnings.

Age Group Hourly Rate Weekly (37.5hrs) Monthly Annual
21 and over NLW £12.21 £457.88 £1,984.13 £23,810
18-20 years NMW £10.00 £375.00 £1,625.00 £19,500
Under 18 NMW £7.55 £283.13 £1,226.88 £14,723
Apprentice NMW £7.55 £283.13 £1,226.88 £14,723

Key Change for 2025/26

The National Living Wage increased by 6.7% to £12.21/hour from April 2025. Workers aged 21 and over receive this rate. The age threshold was lowered from 23 to 21 in April 2024, benefiting approximately 143,000 workers aged 21-22.

Understanding the Difference: NMW vs NLW

National Living Wage (NLW)

£12.21/hr
For workers aged 21 and over
  • Higher rate introduced in 2016
  • Applies from age 21 (from April 2024)
  • Target: 66% of median earnings by 2024
  • Reviewed by: UK Calculator, Founder & Developer

National Minimum Wage (NMW)

£7.55 - £10.00/hr
For younger workers & apprentices
  • Introduced in 1999
  • Different rates by age band
  • Apprentice rate for year 1 or under 19
  • Legally enforceable minimum
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Historical Minimum Wage Rates

Understanding how minimum wage rates have increased over time helps workers and employers plan for future changes and understand the trajectory of wage growth in the UK.

Year NLW (21+) 18-20 Under 18 Apprentice
April 2025 £12.21 £10.00 £7.55 £7.55
April 2024 £11.44 £8.60 £6.40 £6.40
April 2023 £10.42* £7.49 £5.28 £5.28
April 2022 £9.50* £6.83 £4.81 £4.81
April 2021 £8.91* £6.56 £4.62 £4.30
April 2020 £8.72* £6.45 £4.55 £4.15

* NLW applied to workers 23+ until April 2024 when threshold lowered to 21+

Key Milestones in UK Minimum Wage History

April 1999
NMW Introduced National Minimum Wage launched at £3.60/hour for adults
April 2016
NLW Created National Living Wage introduced at £7.20/hour for workers 25+
April 2021
NLW Age Lowered NLW threshold reduced from 25 to 23 years old
April 2024
Largest Increase NLW rises 9.8% to £11.44; age threshold lowered to 21

Employer Compliance: NMW/NLW Requirements

All UK employers must comply with minimum wage legislation. Non-compliance can result in significant penalties, including fines of up to 200% of arrears owed (maximum £20,000 per worker) and public naming by HMRC.

What Counts Towards Minimum Wage?

Counts Towards NMW/NLW

  • Basic hourly pay
  • Performance bonuses and incentive pay
  • Commission payments
  • Most piece rates
  • Sleep-in shifts (active working time)

Does NOT Count

  • Tips paid directly by customers
  • Premium overtime rates (only base counts)
  • Expenses and travel reimbursement
  • Benefits in kind (except accommodation)
  • Pension contributions

Accommodation Offset

Employers can offset a maximum of £9.99 per day (£69.93 per week) from pay for accommodation provided. This is the only benefit that can count towards minimum wage. If charging more than this offset, the excess must not reduce pay below NMW/NLW.

Who Is Entitled to Minimum Wage?

The National Minimum Wage applies to all workers in the UK, including:

  • Full-time and part-time employees
  • Agency workers
  • Workers on zero-hours contracts
  • Home workers and piece workers
  • Trainees and interns (in most cases)
  • Workers on probation periods
  • Disabled workers (sheltered employment rate was abolished in 2017)

Exempt Categories

Genuine volunteers, self-employed people, company directors (unless also workers), family members in family businesses (living in the home), and some fishermen on share fishing agreements are not entitled to NMW/NLW.

Take-Home Pay Calculation

Understanding how much of your minimum wage earnings you'll actually take home is crucial for budgeting. Here's how tax and National Insurance affect minimum wage workers in 2025/26:

Tax and NI Thresholds 2025/26

Threshold Annual Monthly Weekly
Personal Allowance (Tax-free) £12,570 £1,047.50 £241.73
NI Primary Threshold £12,570 £1,047.50 £241.73
Basic Rate Band (20%) £12,571 - £50,270 Above personal allowance
Employee NI Rate 8% (reduced from 12% in January 2024)

Full-Time NLW Worker (37.5 hrs)

£20,663
Estimated Annual Take-Home
Gross Annual£23,810
Income Tax-£2,248
National Insurance-£899
Take-Home£20,663

Part-Time NLW Worker (20 hrs)

£12,698
Estimated Annual Take-Home
Gross Annual£12,698
Income Tax£0
National Insurance£0
Take-Home£12,698

NI Rate Reduction Benefit

The January 2024 NI cut from 12% to 8% means a full-time NLW worker saves approximately £449 per year compared to the previous rate. This puts an extra £37.42 per month in workers' pockets.

Apprentice Minimum Wage Explained

Apprentices have a specific minimum wage rate of £7.55 per hour, but this only applies in certain circumstances. Understanding when the apprentice rate applies is crucial for both employers and apprentices.

When Does the Apprentice Rate Apply?

Situation Rate Applies
Apprentice aged under 19 (any year of apprenticeship) Apprentice rate: £7.55/hr
Apprentice aged 19+ in first year of apprenticeship Apprentice rate: £7.55/hr
Apprentice aged 19+ beyond first year of apprenticeship Age-appropriate NMW/NLW rate

Example Calculation

A 20-year-old apprentice in their second year is entitled to the 18-20 rate of £10.00/hour, not the apprentice rate. If they turn 21 during their apprenticeship (beyond year 1), they're entitled to the full NLW of £12.21/hour.

Apprenticeship Training Time

Important: Time spent on off-the-job training is considered working time and must be paid at least the minimum wage. This includes:

  • Classroom or workshop training
  • Online learning during work hours
  • Study time for apprenticeship qualifications
  • Assessment and exam preparation

Holiday Pay for Minimum Wage Workers

All workers, regardless of their wage rate, are entitled to 5.6 weeks (28 days for full-time) of paid annual leave. For minimum wage workers, understanding how holiday pay is calculated is essential.

Calculating Holiday Pay

Holiday pay should be calculated based on normal earnings, including:

  • Regular overtime
  • Commission and bonuses
  • Regular allowances
  • Regular shift premiums
Worker Type Holiday Entitlement Holiday Pay Value (NLW)
Full-time (37.5 hrs/week) 28 days (5.6 weeks) £2,562
Part-time (20 hrs/week) 15 days pro-rata £1,367
Zero-hours (varies) 12.07% of hours accrued Varies

Rolled-Up Holiday Pay

From April 2024, employers can use "rolled-up" holiday pay for irregular hours and part-year workers. This means adding 12.07% to each payment to cover holiday pay. This must be clearly shown on payslips.

Frequently Asked Questions

From April 2025, the National Living Wage (NLW) for workers aged 21 and over is £12.21 per hour. Workers aged 18-20 receive £10.00 per hour, those under 18 get £7.55 per hour, and apprentices in their first year or under 19 receive £7.55 per hour. These represent significant increases from the previous year's rates.
The National Living Wage (NLW) is the higher minimum rate for workers aged 21 and over (£12.21/hour from April 2025). The National Minimum Wage (NMW) applies to younger workers with different rates: 18-20 (£10.00), under 18 (£7.55), and apprentices (£7.55). From April 2024, the NLW age threshold was lowered from 23 to 21, benefiting around 143,000 additional workers.
At £12.21 per hour working 37.5 hours per week for 52 weeks, a full-time worker on National Living Wage earns £23,810 gross per year. After income tax (£2,248) and National Insurance (£899 at 8%), take-home pay is approximately £20,663. This assumes no other deductions such as pension contributions, student loan repayments, or salary sacrifice schemes.
Minimum wage rates are reviewed annually by the Low Pay Commission, with increases typically taking effect from 1st April each year. The April 2025 rates took effect on 1 April 2025, with the National Living Wage increasing to £12.21 per hour for workers aged 21 and over. The government's target is to align NLW with two-thirds of median earnings, and rates are reviewed annually by the Low Pay Commission.
No. Paying below the National Minimum Wage or National Living Wage is illegal. If you're being paid less than the statutory minimum, you should first raise the issue with your employer. If unresolved, you can contact ACAS (Advisory, Conciliation and Arbitration Service) or report the underpayment to HMRC's minimum wage enforcement team. Employers can be fined up to 200% of arrears owed (maximum £20,000 per worker) and publicly named.
No. Tips, gratuities, and service charges do not count towards minimum wage calculations. Since the Employment (Allocation of Tips) Act 2023 came into force on 1 October 2024, tips must be allocated fairly to workers and cannot be used to top up wages to meet minimum wage requirements. Employers must have a written policy on tip distribution.
There's no legal requirement to pay extra for night shifts, weekends, or bank holidays above the minimum wage, though many employers choose to do so. However, you must still receive at least the minimum wage for all hours worked, including night shifts. Any premium rates for unsocial hours are at your employer's discretion, often set out in your contract or workplace policy.
Workers on zero-hours contracts are fully entitled to the National Minimum Wage or National Living Wage for every hour worked. They also accrue holiday pay at 12.07% of hours worked and are entitled to statutory sick pay once they meet the threshold. From April 2024, employers can use rolled-up holiday pay for irregular hours workers, adding 12.07% to each payment.

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Reviewed by: UK Calculator, Founder & Developer

Founder & Developer - UKCalculator.com

The UK Calculator team is the founder and developer of UKCalculator.com, providing free, accurate calculators for UK residents.

Disclaimer

This calculator provides estimates based on 2025/26 rates and standard assumptions. Actual take-home pay may vary based on your specific circumstances, tax code, pension contributions, student loan repayments, and other factors. For official minimum wage enforcement or complex situations, contact HMRC or seek professional HR advice.

Expert Reviewed — This calculator is reviewed by our team of financial experts and updated regularly with the latest UK tax rates and regulations. Last verified: February 2026.

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Related: Minimum Wage Arrears Calculator