National Minimum Wage Calculator

Pay & Employment Guide

National Minimum Wage explained

The National Minimum Wage (NMW) is the legal minimum hourly pay for workers in the UK. Almost all workers are entitled to it, whether they are full-time, part-time, temporary, casual, or agency workers. Employers who pay below the minimum wage face civil penalties of up to 200% of the underpayment, public naming by HMRC, and in serious cases criminal prosecution.

The National Living Wage is the highest tier of the NMW, applying to workers aged 21 and over. Despite sharing a name with the "real Living Wage" set by the Living Wage Foundation, the statutory National Living Wage is a separate, legally enforceable minimum, not a voluntary rate. The Living Wage Foundation's rate is typically higher and is adopted voluntarily by accredited employers.

Rates are reviewed each year by the independent Low Pay Commission, which consults workers, employers, and economists before making recommendations to the government. The government's target is for the National Living Wage to reach two-thirds of median earnings. New rates take effect each April following the Budget announcement in autumn.

Who is entitled to minimum wage?

Workers and employees are entitled to the minimum wage. This includes agency workers, homeworkers, agricultural workers, and those on zero-hours contracts. The following groups are not entitled:

• Genuinely self-employed people running their own business
• Volunteers and voluntary workers
• Company directors who are not also workers
• Family members of an employer who live in the family home
• Students on unpaid work placements that are part of a UK-based higher or further education course

What counts as pay for minimum wage purposes?

Not all money received from an employer counts toward minimum wage compliance. HMRC looks at "remuneration", the basic pay that genuinely compensates you for working. The following do count:

• Basic hourly or annual salary
• Performance-related pay and bonuses (except where not yet earned)
• Piece-rate pay and output-based pay

These do not count and cannot be used to top up pay to the minimum wage:

• Tips, gratuities, and service charges (even if paid through payroll)
• Overtime and shift premiums above basic rate
• Expense allowances, travel pay, and subsistence
• Employer pension contributions and benefits-in-kind
• Loan repayments or advance deductions

Hours that must be paid

The type of work determines how hours are counted. For time work (paid by the hour), you must be paid the minimum for every hour worked. For salaried hours work, your annual salary is divided across your basic contracted hours. Time that is generally not counted includes unpaid rest breaks and, for most workers, sleep-in shifts where you are permitted to sleep. However, HMRC's position on sleep-in pay has evolved, if you are expected to be awake and working during a sleep-in, those hours must be paid at minimum wage.

Deductions that reduce take-home pay, such as mandatory uniform purchases, tools, or salary sacrifice arrangements, can push effective hourly pay below the legal minimum even if the headline rate appears compliant. HMRC treats these deductions as reducing pay for minimum wage calculation purposes.

Apprentice pay rules

Apprentices have their own rate (currently £7.55/hour for 2025/26) but only if they are either under 19, or aged 19 or over and in the first year of their apprenticeship. After completing the first year and turning 19, apprentices become entitled to the standard minimum wage rate for their age group. Many employers voluntarily pay apprentices the full NLW from the start.

What to do if you're being underpaid

If you believe you are being paid below the legal minimum, you can raise it with your employer first. If that does not resolve it, you can report it to HMRC confidentially via the Pay and Work Rights helpline (0300 123 1100) or submit a complaint at gov.uk. HMRC investigates all complaints. Workers have additional employment rights protection and cannot be dismissed or treated unfairly for raising a minimum wage concern.