National Living Wage & Minimum Wage Calculator (UK 2024)

National Living Wage Guide

NLW and NMW Rates April 2024

National Living Wage (21+): £11.44 per hour (from 1 April 2024). Increased from £10.42 in April 2023 — a 9.8% rise. National Minimum Wage rates: 18-20 years: £8.60/hour. 16-17 years: £6.40/hour. Apprentices (first year or under 19): £6.40/hour. Rates typically increase each April following the Low Pay Commission's recommendations. Government target: NLW to reach two-thirds of median earnings. At current trajectory: approximately £13.00+/hour by 2026.

What Counts as Pay for NMW

Counts toward NMW/NLW: basic pay. Commission and bonuses (averaged over pay period). Does NOT count toward NMW: tips and gratuities (discretionary — received directly by worker). Loans and salary advances. Pension contributions by employer. Travel expenses, tools, equipment, uniforms. Deductions for accommodation: employers can deduct up to £9.99/day for accommodation (2024 rate) — amounts above this bring effective hourly pay below NLW. Sleep-in shifts: care workers on sleep-in shifts are legal

Reporting Underpayment

How to report if you think you are being underpaid: HMRC National Minimum Wage helpline: 0800 917 2368 (free, confidential). Online report via gov.uk. Your employer cannot legally dismiss you or treat you unfairly for reporting. HMRC powers: HMRC investigates complaints and conducts its own compliance checks. Underpaying employers must repay workers in full plus a penalty of 200% of the underpayment (minimum £100, maximum £20,000 per worker). Named and shamed: HMRC publishes lists of employers f

Living Wage vs Real Living Wage

The government's National Living Wage is distinct from the Living Wage Foundation's Real Living Wage. Real Living Wage 2024: UK rate: £12.00/hour. London Living Wage: £13.15/hour. The Real Living Wage is independently calculated to reflect the actual cost of living — higher than the NLW. Over 14,000 UK employers are accredited Living Wage Foundation employers. Paying the Real Living Wage is voluntary but signals commitment to fair pay. Employee benefits of Real Living Wage employers: higher rete

Not financial advice. This calculator is for general information and education only. Figures are estimates and may not reflect your circumstances. For decisions, consult the FCA register and a qualified financial adviser. See our editorial standards.

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