Calculate National Living Wage

The National Living Wage (NLW) is the minimum hourly wage that employers must pay workers aged 21 and over in the UK. This calculator helps you determine the NLW for a given number of hours worked, including overtime.

What is National Living Wage?

The National Living Wage was introduced in April 2016 to ensure that workers earn enough to meet basic living costs. It applies to workers aged 21 and over, while younger workers are covered by the National Minimum Wage.

The NLW is reviewed annually and adjusted for inflation. Employers must pay at least the NLW rate to workers who meet the age requirement, regardless of their qualifications or experience.

How to Calculate National Living Wage

To calculate your potential earnings based on the National Living Wage, you need to know:

The current NLW rate (varies by year)
The number of hours you work in a week
Whether you work overtime

The basic calculation is straightforward:

Weekly Earnings = (NLW Rate × Hours Worked) + (Overtime Rate × Overtime Hours)

Where the overtime rate is typically 1.25 times the NLW rate.

Current Rates

The NLW rates for 2024 are as follows:

Age Group	Hourly Rate (GBP)
21 and over	£11.44
23 and over (from April 2025)	£11.80

These rates are subject to annual review and inflation adjustments.

How It Affects You

The National Living Wage has several important implications:

It provides a minimum standard of pay for workers
It helps ensure fair wages across different industries
It contributes to reducing income inequality
It affects both full-time and part-time workers

For example, if you work 37.5 hours a week at the 2024 rate of £11.44 per hour, your weekly earnings would be:

£11.44 × 37.5 = £426.50

This is the minimum you should be paid before taxes and other deductions.

FAQ

What is the difference between National Living Wage and National Minimum Wage?

The National Living Wage applies to workers aged 21 and over, while the National Minimum Wage applies to younger workers. The NLW is higher than the NMW.

How often is the National Living Wage reviewed?

The NLW is reviewed annually and adjusted for inflation. The rate for 2025 will be announced in early 2025.

Do employers have to pay the National Living Wage?

Yes, employers must pay at least the NLW rate to workers who meet the age requirement, regardless of their qualifications or experience.

Is the National Living Wage the same as the minimum wage?

No, the NLW is specifically for workers aged 21 and over, while the minimum wage applies to younger workers and apprentices.

How can I check if I'm being paid the National Living Wage?

You can use this calculator to compare your actual pay with the NLW rate. If your pay is below the NLW, you may have grounds to discuss it with your employer.