National Minimum Wage and National Living Wage

The rates and who they apply to

Workers aged eighteen to twenty are entitled to at least £10.85 an hour, and workers under eighteen to £8. The apprentice rate of £8 applies to apprentices under nineteen and to older apprentices in the first year of their apprenticeship. After that first year, an apprentice aged nineteen or over moves to the rate for their age.

Pay is checked against the rate as an average over each pay period, so a salaried worker with long hours can fall below it even when the yearly salary looks high enough.

What changed from last year

The National Living Wage rose from £12.21 to £12.71 an hour. The rate for eighteen to twenty year olds rose from £10, the largest rise of the four in percentage terms, which narrows the gap between that age group and workers aged twenty-one and over. The under eighteen and apprentice rates both rose from £7.55.

Accommodation provided by the employer

Accommodation is the only benefit that counts towards minimum wage pay. An employer that provides it can count up to £11.10 a day or £77.70 a week. If the employer charges more than that, the difference comes off the pay that counts towards the minimum wage.

Hours, salary and take-home pay

The second table turns the National Living Wage into weekly, monthly and yearly pay for a full-time week of thirty-seven and a half hours. The hourly rate calculator converts any rate in either direction, and the pro rata calculator scales a full-time salary to fewer hours. A full year at the National Living Wage sits above the personal allowance, so income tax and National Insurance apply. The take-home pay calculator shows what is left after both, and the income tax rates page lists the bands.