National Living Wage Calculator

What is the National Living Wage?

The National Living Wage is the minimum hourly wage that employers in the UK must pay to employees aged 23 and over. It is set by the UK government and is designed to ensure that workers can afford a decent standard of living.

In addition to the National Living Wage, there are also National Minimum Wages for employees aged 21-22 and apprentices. The rates are reviewed annually and are adjusted for inflation.

How to Calculate the National Living Wage

Calculating the National Living Wage involves determining the minimum hourly wage based on the employee's age and the number of hours worked. The calculation is straightforward and can be done using the formula below.

The result of this calculation will give you the net amount the employee will receive after taxes.

Formula Used

The National Living Wage is calculated using the following formula:

Where:

• Hourly Rate - The minimum wage rate for the employee's age group (£11.44 for 23+ in 2024)
• Hours Worked - The number of hours worked in a week
• Tax Rate - The income tax rate (20% for basic rate taxpayers)

This formula calculates the net amount the employee will receive after taxes.

Worked Example

Let's say an employee aged 23 works 35 hours a week. The National Living Wage for 23+ in 2024 is £11.44 per hour. The employee is a basic rate taxpayer with a 20% income tax rate.

So, the employee will receive £320.32 net after taxes for a 35-hour workweek.