National Living Wage (age 21+) · £12.21/hr × 40 hours · Gross pay before tax and National Insurance.
TimeTally SoftwareEmployees submit timesheets via the iOS app. Pay is calculated from approved hours. You approve in one tap — no calculators needed.
| Category | Hourly rate | 40hr week | Annual (40hr) |
|---|---|---|---|
| National Living Wage (age 21+) | £12.21 | £488.40 | £25,396.80 |
| Age 18–20 | £10.00 | £400.00 | £20,800.00 |
| Under 18 | £7.55 | £302.00 | £15,704.00 |
| Apprentice | £7.55 | £302.00 | £15,704.00 |
Rates set by the Low Pay Commission and effective from 1 April 2026. Figures shown are gross pay before tax and NI deductions.
The National Living Wage (NLW) is £12.21 per hour for workers aged 21 and over, effective from April 2026. It is the legal minimum hourly rate that employers must pay — paying below it is unlawful and can result in HMRC penalties, back pay claims, and public naming.
Younger workers and apprentices are covered by the National Minimum Wage (NMW), which has separate rates by age category (see table above).
The calculation is straightforward:
Weekly pay = hourly rate × hours per week
Monthly pay = weekly pay × 52 ÷ 12
Annual pay = weekly pay × 52
For example: a 40-hour week at £12.21/hr = £488.40/week, £2,116.40/month, and £25,396.80/year gross.
Only basic pay counts. The following do not count towards the minimum wage calculation:
Accurate time tracking is essential for minimum wage compliance — especially for workers on variable hours or zero-hours contracts. If hours aren't recorded properly, employers can accidentally breach minimum wage rules without realising.
TimeTally's timesheet software records every hour worked, flags overtime, and exports approved hours to Xero or QuickBooks — making it straightforward to verify that every employee is paid at or above the minimum wage rate for every hour worked. See also our salary to hourly rate converter for converting annual salaries to an effective hourly rate.
This calculator gives you the numbers. TimeTally tracks hours, approvals, and pay automatically. From £2/employee/month.
Pay is calculated directly from approved timesheets. Overtime rates applied automatically. No manual adjustments.
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The National Living Wage (NLW) for workers aged 21 and over is £12.21 per hour from April 2026. Workers aged 18–20 receive £10.00/hr, under-18s receive £7.55/hr, and apprentices receive £7.55/hr (if under 19 or in their first year).
Multiply the hourly rate by hours worked per week. For example: £12.21 × 40 hours = £488.40/week. For monthly pay, multiply the weekly figure by 52 and divide by 12. For annual pay, multiply weekly pay by 52.
£12.21 × 8 hours = £97.68. This is the gross daily pay for a worker on the National Living Wage working an 8-hour shift. Weekly (5 days): £488.40. Monthly: approximately £2,116.40. Annual: £25,396.80.
£12.21 × 40 = £488.40 per week gross. Over a year (52 weeks) this equals £25,396.80 annual salary before tax and National Insurance.
No. Tips, gratuities, and service charges do not count towards the National Minimum Wage or National Living Wage. Employers must pay at least the minimum wage from basic pay alone, regardless of how much employees earn in tips.
Paying below the minimum wage is unlawful. HMRC can issue a notice to pay arrears to workers, impose financial penalties of up to 200% of arrears (minimum £100, maximum £20,000 per worker), and name employers publicly. Workers can also make an employment tribunal claim.
Yes. Part-time workers receive the same hourly minimum wage rate as full-time workers. There is no reduced rate for working fewer hours — the rate applies per hour regardless of total hours worked per week.
