The National Living Wage sets the legal pay floor for UK workers. If your employer pays you less, they are breaking the law and you have the right to reclaim arrears. This guide lists the current rates, explains what counts as pay, and shows you how to check your own hourly rate.
For the full PocketWise guide to employment rights and pay, see the Employment Rights Hub.
National Minimum Wage rates 2025/26
(April 2025 rates — 2026/27 rates to be confirmed in the Autumn Budget)
| Age group | Hourly rate |
|---|---|
| 21 and over (National Living Wage) | £12.21 |
| 18–20 | £10.00 |
| 16–17 | £7.55 |
| Apprentice (first year, or under 19) | £7.55 |
Previous NLW rates for reference
| Year | NLW (21+) | Year-on-year increase |
|---|---|---|
| 2021/22 | £8.91 | +2.2% |
| 2022/23 | £9.50 | +6.6% |
| 2023/24 | £10.42 | +9.7% |
| 2024/25 | £11.44 | +9.8% |
| 2025/26 | £12.21 | +6.7% |
How to check your hourly rate
Salaried workers
To convert an annual salary to an hourly rate:
Hourly rate = Annual salary ÷ (weekly hours × 52)
| Annual salary | Hours per week | Implied hourly rate |
|---|---|---|
| £20,000 | 40 | £9.62 |
| £24,000 | 40 | £11.54 |
| £25,000 | 40 | £12.02 |
| £25,394 | 40 | £12.21 (NLW threshold) |
Important: If you are a full-time worker on £25,000 per year working 40 hours per week, your implied hourly rate (£12.02) is below the 2025/26 NLW of £12.21. Your employer should have increased your salary to at least £25,397 (£12.21 × 40 × 52) to comply with the law.
Hourly workers
Divide your weekly pay by your contracted hours. If you regularly work more than your contracted hours, your actual hourly rate from total pay and total hours must still meet the NMW.
Example of an illegal arrangement:
A care worker contracted for 35 hours per week is required to travel between appointments, but travel time is not included in paid hours. If the contract pays £12.21/hour for 35 hours but the worker actually works 40 hours (including travel), the effective rate is:
(£12.21 × 35) ÷ 40 = £10.68/hour — below the NLW.
Travel time between jobs (for domiciliary care workers and similar roles) counts as working time and must be paid at least at the NMW.
What counts as pay for NMW purposes
Included
- Basic wages and salary
- Incentive and performance pay
- Piece-rate and task-rate pay
- Accommodation offset (if employer provides accommodation — up to £10.82 per day in 2025/26 can be treated as pay)
Excluded
- Tips, gratuities, and service charges (excluded from NMW calculation since July 2024)
- Premium pay for overtime (only the basic element counts — if you’re paid double-time for Sunday, only the base rate counts)
- Benefits in kind (except accommodation)
- Loans and advances
- Expenses reimbursements
Unlawful deductions that breach NMW
The following deductions are unlawful if they take gross pay below the NMW:
- Deductions for uniforms or specialist clothing
- Deductions for tools or equipment
- Deductions for training costs
- Till shortfalls
- Administrative charges
Deductions from gross pay (e.g. tax, NI, pension via salary sacrifice) are also taken into account — a pension salary sacrifice arrangement that reduces pay below the NMW is unlawful.
Working hours and NMW
All of the following count as working time for NMW purposes:
- Time spent on shift (even between tasks)
- Mandatory training outside normal hours
- Time spent travelling between work locations
- Sleep-in shifts where you must remain available (your employer must pay at least NMW for all sleep-in hours — not just when you are called)
- Time spent at work before your shift officially starts if required
What to do if you are underpaid
- Check your payslip — calculate your actual hourly rate
- Raise it with your employer — mistakes happen; it may be resolved quickly
- Report to HMRC — via gov.uk/pay-and-work-rights (your identity remains confidential)
- Claim arrears — there is no time limit on NMW arrears; HMRC can look back over multiple years
Employers found in breach face:
- Repayment of all arrears at the current NMW rate (not the rate in force at the time)
- A civil penalty of up to 200% of the arrears (minimum £100, maximum £20,000 per worker)
- Public naming
The Living Wage Foundation (voluntary)
The Living Wage Foundation’s Real Living Wage is a voluntary, higher rate based on the actual cost of living. It is not legally required but over 14,000 accredited Living Wage employers pay it. In 2025/26:
- UK rate: £12.60/hour
- London rate: £13.85/hour