🇬🇧 United Kingdom

Minimum Wage Calculator

Check if your pay meets the National Living Wage or National Minimum Wage for 2025/26. Calculate your effective hourly rate, see how unpaid overtime affects your pay, and compare all age band rates.

Determines which minimum wage rate applies to you
£
Your gross salary before tax
hours
Hours per week in your contract

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How to Use This Calculator

Am I Paid Enough? tab

Select your age band (21+, 18-20, under 18, or apprentice) and enter either your annual salary or hourly rate, plus your weekly hours. The calculator works out your effective hourly rate and tells you whether you meet the National Living Wage or National Minimum Wage for your age group. If you are underpaid, it shows the annual and weekly shortfall.

Hours Check tab

Enter your annual salary, contracted hours, and actual hours worked (including unpaid overtime). See how working beyond your contract pushes your effective hourly rate down — and whether it drops below the legal minimum. This is especially useful for salaried workers who regularly work through lunch or stay late.

Age Bands tab

View all current NLW and NMW rates in one table with full-time annual equivalents. Enter your salary to compare it against every age band and see how much above or below each rate you fall.

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The Formula

The effective hourly rate calculation is straightforward:

Effective Hourly Rate = Annual Salary ÷ (Weekly Hours × 52)

For example:
£24,000 ÷ (40 × 52) = £24,000 ÷ 2,080 = £11.54/hour

Annual Underpayment = (Minimum Wage − Effective Rate) × Weekly Hours × 52

With unpaid overtime:
Actual Hourly Rate = Annual Salary ÷ (Actual Hours Worked × 52)

The key insight is that all hours worked count, not just contracted hours. If you are paid a salary but regularly work unpaid overtime, your effective hourly rate drops. HMRC uses total hours worked when assessing minimum wage compliance.

The accommodation offset allows employers who provide living accommodation to count up to £10.66 per day (from April 2025) towards minimum wage pay. This is the only benefit that counts — other non-cash benefits like meals, uniforms, or transport do not count towards minimum wage.

Example

Tom — 25, earning £24,000/year on a 40-hour contract but regularly works 47 hours

Tom is a retail manager earning £24,000 per year. His contract says 40 hours per week, but he regularly stays late for stocktakes and works through lunch breaks, averaging 47 hours per week.

At contracted hours (40/week)

Annual salary£24,000
Weekly hours (contracted)40
Effective hourly rate£11.54
NLW (21+)£12.21
Compliant?No — £0.67/hour below NLW

At actual hours (47/week)

Annual salary£24,000
Actual hours worked47
Effective hourly rate£9.82
NLW (21+)£12.21
Compliant?No — £2.39/hour below NLW

Tom's salary of £24,000 ÷ (40 × 52) = £11.54/hour — already below the NLW of £12.21. At his actual 47 hours: £24,000 ÷ (47 × 52) = £9.82/hour, significantly below minimum wage. Tom's employer needs to either increase his pay or reduce his hours to comply with the law.

FAQ

The National Living Wage (NLW) is the legal minimum hourly pay for workers aged 21 and over in the UK. From 1 April 2025, it is £12.21 per hour. It is set by the government based on recommendations from the Low Pay Commission and is legally enforceable — employers who pay below this rate can face fines and be required to repay arrears. The NLW is different from the voluntary "Real Living Wage" set by the Living Wage Foundation, which is higher but not legally required.
Almost all workers in the UK are legally entitled to at least the National Minimum Wage (or National Living Wage if 21+). This includes part-time workers, agency workers, workers on zero-hours contracts, and most casual workers. The main exceptions are: self-employed people, company directors, volunteers, members of the armed forces, prisoners, and family members living in the employer's home who share in household tasks and meals. Interns are entitled to the minimum wage if they count as "workers" — which they usually do if they have set hours, tasks, and are not simply observing.
Working time for minimum wage includes all time when you are required to be at work or available for work. This covers: time spent working, compulsory training (including induction), time spent travelling between assignments during the working day, time spent on-call at the workplace, and working through lunch breaks. It does not include: rest breaks when you are genuinely free to do as you please, travel between home and work, paid holiday time, or periods of industrial action. Importantly, if you regularly work unpaid overtime, all of those hours count when calculating your effective hourly rate.
If you believe you are being paid below the National Living Wage or National Minimum Wage, you have several options. First, raise it with your employer — it may be an honest mistake, especially with overtime calculations. If that doesn't resolve it, you can: (1) Contact ACAS (Advisory, Conciliation and Arbitration Service) on 0300 123 1100 for free, confidential advice. (2) Make a complaint to HMRC via the online form on GOV.UK — HMRC can investigate and order your employer to pay arrears plus a penalty of up to 200% of the underpayment. (3) Take your employer to an employment tribunal. Your employer cannot legally dismiss or treat you unfairly for asserting your minimum wage rights.
NLW and NMW rates are reviewed annually and typically change on 1 April each year. The Low Pay Commission (LPC) makes recommendations to the government, usually in the autumn, and the new rates are confirmed in the Budget or subsequent announcement. For 2025/26 (from 1 April 2025): NLW (21+) is £12.21, NMW (18-20) is £10.00, Under 18 is £7.55, and Apprentice rate is £7.55. The government has a target for the NLW to reach two-thirds of median earnings. Past increases have been significant — the NLW has risen from £7.83 in 2018 to £12.21 in 2025.

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