⚖️ UK National Living Wage Calculator

The National Living Wage (NLW) is the UK's legal minimum hourly rate for workers aged 21 and over. It was introduced in April 2016 and has been raised every year since. From April 2026, the NLW rate is GBP 12.71 per hour for workers aged 21 and above. Separate National Minimum Wage rates apply to younger workers: GBP 10.85/hr for those aged 18 to 20, GBP 8.00/hr for 16 to 17-year-olds, and GBP 8.00/hr for apprentices who are under 19 or in the first year of their apprenticeship.

The NLW is enforced by HMRC (His Majesty's Revenue and Customs). Employers who pay below the legal minimum face penalties of up to 200% of the underpayment owed (capped at GBP 20,000 per worker), plus the arrears themselves. Workers who believe they are being underpaid can submit a confidential complaint to ACAS or HMRC, and employers named and shamed in public lists for minimum wage breaches.

It is important to distinguish the government's NLW from the Real Living Wage promoted by the Living Wage Foundation, a voluntary rate calculated based on the actual cost of living. The Real Living Wage is typically higher than the legal NLW and is paid voluntarily by over 14,000 accredited employers across the UK.

An important rule for some workers is the accommodation offset. If an employer provides free living accommodation, they can offset a maximum of GBP 68.50 per day (for 2026/27) against the worker's pay for minimum wage calculations. This means the value of the housing is counted toward the minimum wage up to that daily cap, but nothing above it. Any deduction or charge for accommodation above this cap effectively reduces the worker's hourly rate below the legal minimum.

This calculator helps workers verify whether their actual hourly rate meets the legal minimum for their age group, and projects the minimum annual, monthly and weekly gross earnings based on contracted hours. All figures shown are gross (before tax, National Insurance, and other deductions).

The calculator takes three inputs: your age group, your weekly contracted hours, and your actual hourly rate (if known). It looks up the correct legal minimum rate for your age group from the April 2026 schedule, then multiplies it by your hours and 52 weeks to produce the annual, monthly (divided by 12) and weekly minimum gross pay.

If you enter your actual hourly rate, the tool compares it to the legal minimum and shows whether your pay is compliant (at or above), below the legal minimum, or exactly at the threshold. It also calculates the shortfall in pence per hour and the annual underpayment if applicable.

The April 2026 minimum hourly rates are:

Accommodation offset (2026/27): Maximum GBP 68.50 per day. If your employer provides accommodation, only this amount per day counts toward minimum wage compliance.

1. Select your age group (21+, 18-20, 16-17, or apprentice).
2. Enter your contracted hours per week.
3. Optionally enter your actual hourly rate to check compliance.
4. Click Calculate to see your minimum annual, monthly, and weekly pay.
5. Review the compliance status if you entered your actual rate.

What is the National Living Wage rate from April 2026?

From April 2026 the NLW rate for workers aged 21 and over is GBP 12.71 per hour. Workers aged 18-20 receive GBP 10.85, 16-17-year-olds receive GBP 8.00, and apprentices under 19 or in their first year receive GBP 8.00 per hour.

Does the accommodation offset reduce my pay?

If your employer provides free accommodation, they can count up to GBP 68.50 per day (2026/27) toward your minimum wage calculation. Any charge above this effectively reduces your hourly rate. The offset applies regardless of the actual cost of the accommodation.

Are overtime and tips counted toward the NLW?

No. Only your basic hourly pay counts toward minimum wage compliance. Overtime premiums, bonuses, commission, and tips (whether cash or via payroll) are excluded from the calculation.

What should I do if I think I am being underpaid?

Gather your payslips and time records, then contact ACAS for free, confidential advice. You can also submit a complaint directly to HMRC on GOV.UK. HMRC can investigate, order repayment of arrears, and fine the employer up to 200% of the underpayment.

Can my employer pay me less if I am on a zero-hours contract?

No. Workers on zero-hours contracts are entitled to at least the National Living Wage or Minimum Wage for every hour actually worked. The minimum wage applies regardless of contract type.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

Always check your hourly rate against the correct age band. Employers sometimes apply the wrong rate when an employee has a birthday and moves up a bracket. If you are an apprentice, remember you get the apprentice rate only if you are under 19 or in the first year of your apprenticeship. After that, you are entitled to the rate for your age. Keep your payslips for at least six years: they are the evidence you need if you ever claim underpayment. If your employer provides accommodation, calculate the offset yourself using the GBP 68.50/day cap and verify that your effective hourly rate after deductions still meets the legal minimum. Workers on piece-rate or output-based pay must still receive at least the NLW for every hour worked: the employer should set a fair piece rate or pay the hourly minimum. Overtime, bonuses, and tips do not count toward minimum wage. If you suspect underpayment, contact ACAS (free, confidential) or submit a complaint to HMRC directly on GOV.UK.