National Living Wage 2026 — Rates, Take-Home Pay and What Changed
🧮 Calculate your take-home pay →The National Living Wage (NLW) is the legal minimum hourly rate employers must pay workers aged 21 and over in the UK. It rises each April in line with the Low Pay Commission's recommendations and the government's target of keeping it at two-thirds of median earnings.
From April 2025, the NLW increased to £12.21 per hour — a 6.7% rise from the previous £11.44. The April 2026 rate will be confirmed in the Autumn Budget 2025, but on current trajectory is expected to reach approximately £12.60–£13.00 per hour.
All minimum wage rates from April 2025
| Worker Category | Hourly Rate | Annual (37.5hrs/wk) | Change from 2024 |
|---|---|---|---|
| National Living Wage (21+) | £12.21 | ~£23,810 | +6.7% |
| 18–20 year olds | £10.18 | ~£19,851 | +16.3% |
| 16–17 year olds | £7.55 | ~£14,723 | +18.0% |
| Apprentices (under 19, or any age in first year) | £7.55 | ~£14,723 | +18.0% |
NLW annual salary and take-home pay
Working full-time (37.5 hours per week, 52 weeks) on the National Living Wage gives a gross annual salary of approximately £23,810. Here is what that looks like after tax:
| Annual | Monthly | Weekly | |
|---|---|---|---|
| Gross pay | £23,810 | £1,984 | £458 |
| Income Tax | £2,248 | £187 | £43 |
| National Insurance (employee) | £1,699 | £142 | £33 |
| Take-home pay | £19,863 | £1,655 | £382 |
The NLW vs the Real Living Wage
The government's National Living Wage is a legal minimum — it is not the same as the voluntary Real Living Wage set annually by the Living Wage Foundation, which is calculated based on actual living costs:
| Wage | Rate (2025/26) | Status |
|---|---|---|
| National Living Wage (gov't) | £12.21/hr | Legal minimum (21+) |
| Real Living Wage (outside London) | £13.85/hr | Voluntary; ~15,000 accredited employers |
| London Living Wage | £17.05/hr | Voluntary; London cost of living |
What the NLW rise means for employers
Higher wages mean higher employer National Insurance costs. From April 2026, employers pay 15% NI on earnings above £5,000 per year. For a full-time NLW worker earning £23,810:
- Employer NI: 15% × (£23,810 − £5,000) = approximately £2,822 per year
- Total employment cost: ~£26,632 per employee (before any pension contributions)
- Auto-enrolment pension (minimum 3% employer): additional ~£561/year
This is why many small businesses — particularly in hospitality and retail — report significant cost pressure when the NLW rises.
How to check you are being paid correctly
Your employer must pay at least the NLW for every hour worked, including:
- All hours on shift, including mandatory training and travel between sites
- Sleep-in shifts where you are required to be present
- Trial periods and probation periods
If you believe you are being underpaid, you can report it to HMRC via the HMRC Minimum Wage team. HMRC can order back pay plus a penalty of 200% of underpayment.
Calculate your take-home pay
Enter any hourly rate or annual salary to see your 2026/27 net pay after all deductions.