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Free Minimum Wage Calculator
Calculate minimum wage pay for any worker category using the latest 2026 NMW rates. Instantly see weekly and annual pay — and check whether your rates are compliant.
21 and over: £12.71 an hour. The National Living Wage: the standard rate for most workers.
Enter any rate to check it against the minimum
National Living Wage (age 21+) · £12.71/hr × 40h a week · About £2,203.07 a month. Gross pay before tax and National Insurance.
The pay reference period check
HMRC checks the whole pay reference period: the pay that counts, divided by every hour worked. On this payslip it looks like £13.97 an hour; for minimum wage it is £11.93, under the £12.71 minimum for 21 and over.
On the payslip£628.73 ÷ 45h paid£13.97 an hour
For minimum wage£551.95 ÷ 46h 15m worked£11.93 an hour
£35.89 shortfor this pay period: £12.71 × 46h 15m is £587.84
Regulation 10 of the National Minimum Wage Regulations 2015 lists what never counts: premiums for overtime or shifts, tips and service charges, and benefits in kind other than accommodation (up to £11.10 a day). Here the pay reference period is a week; for someone paid monthly it is the month. A guide, not legal advice: GOV.UK.
Eight things employers get wrong
NMW underpayment is the most common HMRC employer enforcement action. Here's every rule that affects your payroll.
The Real Living Wage is the legal minimum
The National Living Wage (NLW) is the mandatory minimum for workers aged 21 and over. The National Minimum Wage (NMW) covers younger workers in age bands: 18–20, 16–17, and apprentices. Both are set by the government following Low Pay Commission recommendations and increase each April. There is no legal requirement to pay the 'Real Living Wage' — a higher voluntary rate set by the Living Wage Foundation based on cost of living — but many employers adopt it as a commitment to pay equity. Only the statutory NLW/NMW rates carry legal force.
We only owe it for their contracted hours
NMW compliance is assessed across total working time in a pay reference period — not just contracted hours. 'Working time' includes: time spent travelling between assignments (but not commuting); mandatory training; time at the employer's disposal even if not actively working; and on-call time at the workplace. Unpaid breaks during which the worker must remain on the premises or on call also count. Employers who calculate NMW compliance based only on contracted hours, while requiring workers to arrive early, stay late, or attend mandatory briefings, are frequently non-compliant.
Deductions don't affect minimum wage
Certain deductions reduce 'pay' for NMW purposes and can cause a breach where none was otherwise present. Deductions for: uniforms required by the employer; equipment purchased by the worker for the job; accommodation above the offset rate (£11.10/day from April 2026); and salary sacrifice arrangements can all reduce effective hourly pay below the NMW. Voluntary deductions (e.g. additional pension contributions above auto-enrolment minimum) may also reduce NMW pay depending on the scheme structure. HMRC calculates compliance after deductions.
Salaried staff can't fall below it
Salaried workers are often assumed to be NMW-compliant because their salary exceeds the annual equivalent. However, if a salaried worker's total actual hours in a pay period — including unpaid overtime, early starts, or required out-of-hours availability — push their effective hourly rate below the NMW, the employer is in breach. This 'salaried hours work' category requires employers to track actual hours worked against the salary paid, particularly for roles where demand is seasonal or where culture encourages unpaid overtime.
Apprentices get the apprentice rate all the way through
Apprentices are entitled to a specific NMW rate (£8.00/hour from April 2026) if they are either under 19, or aged 19 or over but in the first year of their apprenticeship. Once an apprentice turns 19 and completes their first year, they are entitled to the NMW rate for their age band. Employers who continue paying the apprentice rate beyond this point are in breach. The transition is not automatic — payroll must track apprentice ages and anniversary dates to ensure the correct rate is applied from the correct pay period.
If HMRC finds it, we just pay the difference
HMRC's National Minimum Wage compliance team investigates complaints from workers, referrals from other agencies, and conducts proactive sector-wide campaigns. On investigation, HMRC can demand payroll records, time sheets, and employment contracts going back 6 years. If a breach is found, HMRC issues a Notice of Underpayment requiring the employer to repay all underpaid wages plus a financial penalty of 200% of the underpayment (up to £20,000 per worker), with a 50% discount if paid within 14 days. Arrears are calculated at current NMW rates, not the rate at the time of the breach.
An underpayment stays between us and HMRC
The government publicly names employers found to have underpaid NMW, publishing details of the breach on a dedicated register. Since 2013, thousands of employers have been named, including household brands. The reputational damage from appearing on the register often exceeds the financial penalty — particularly for consumer-facing businesses. Being named does not prevent future HMRC investigation; it may in fact increase scrutiny. Voluntary self-correction before a complaint is received can, in some circumstances, avoid public naming.
It's fine if it averages out over the year
Zero-hours and variable-hours workers present particular NMW compliance challenges because pay and hours both fluctuate. NMW compliance must be checked in every pay reference period — a worker who is above NMW in most weeks may fall below it in a particularly busy week where hours spike. Rolled-up holiday pay doesn't count towards the NMW, so the base hourly rate on its own must stay at or above it, before the rolled-up element is added. Payroll systems that calculate NMW compliance per period — rather than as an annual average — significantly reduce the risk of inadvertent breaches.
From the calculator to every payday
This calculator gives you the numbers. TimeTally tracks hours, approvals, and pay automatically — so you never need to calculate it manually again. From £3/employee/month.
Staff submit timesheets via the iPhone or Android app, or web. Clock in/out is tracked automatically. Hours are recorded accurately — no paper forms, no chasing.
All pending timesheets land in your dashboard. Approve or reject with a single tap. Every decision is timestamped — full audit trail for every timesheet.
Pay is calculated directly from approved timesheets, at each person's own hourly rate, with overtime split out at your overtime rate. No manual adjustments, no errors. Whether that rate clears the minimum wage is still yours to check: the calculator above does it in seconds.
Approved timesheets feed directly into your payroll export. Direct integration with Xero and QuickBooks — no manual data entry, no missed hours.
Select any feature for the detail.
Overtime that works itself out.
Two triggers: threshold overtime kicks in once an employee exceeds a set number of hours per day or week. Time-of-day overtime pays a premium for hours worked in a specific window (e.g. after 6pm or before 6am), regardless of total hours. Two pay methods: a rate multiplier (e.g. 1.5×) or a fixed hourly rate for overtime hours. Stack multiple rules, build tiers, and configure each employee independently.
Know exactly where the hours went.
Entirely optional — only enable it if you need it. When on, employees split their hours across projects when submitting (e.g. 3h on Client A, 4h on internal work). You can set project pay for the worker: an hourly rate on top of or instead of their usual rate, or a flat fee per entry (useful for callouts or site visits). Managers get a clear breakdown of where time is actually going.
Offer time off instead of overtime pay.
An optional alternative to paying overtime — enable it only if you want to offer time off in lieu instead of (or alongside) extra pay. Set a TOIL conversion rate (e.g. 1h overtime = 1.5h leave) and overtime hours automatically accrue as a TOIL balance — no manual tracking. TOIL is kept separate from annual leave so it never eats into holiday entitlement. Employees book it the same way they book any other leave.
Approve a whole week from your phone.
Managers approve or reject timesheets from any device — phone, tablet, or desktop. Rejections include a written reason so employees know exactly what needs fixing and can resubmit. Managers can see who has not submitted for the period, and are emailed as each timesheet comes in. Pay totals are calculated automatically from approved hours — no manual maths at payroll time.
Clock in, or fill in a form.
Two submission modes — employees use whichever fits their workflow. Clock-in mode starts a live timer the moment they begin their shift. The timer runs in the background even if the app is closed, so no hours are lost. Form mode lets them enter start time, end time, and breaks at the end of the day or week. Both work on mobile and desktop.
Every hour costed at the right rate.
Set each employee's own hourly rate and pay totals are calculated automatically from their approved hours. Scope managers to their department so they only ever see their own team's data. Want to keep salaries private? Hide pay rates and totals from managers entirely — they see hours, but never figures. Full control over who sees what.
Straight into Xero or QuickBooks.
Send approved timesheets to payroll in a few taps. Export to CSV, Xero, or QuickBooks — filter by date range, employee, or department, and choose exactly which columns to include. You can combine timesheet and leave data in a single export so your payroll software gets everything it needs in one file.
Meet TimeTally
TimeTally automatically tracks hours, works out pay at each person's rate, and keeps a record of every approved timesheet for your entire team. Explore all features or see how it works.
£3/employee/month
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See what we offerYour staff get the free TimeTally app for iPhone and Android.
Real reviews from TimeTally customers
TimeTally has been excellent for our business. The app is simple to use, reliable, and makes managing staff records straightforward. The system has saved us a significant amount of administration time. Highly recommended for any business looking for an easy-to-use workforce management solution.
Jordan IngoeCLI ManchesterSetup was dead simple and the team just got on with it. Got everyone up and running in an afternoon with no help needed. Does everything we need for timesheets and holidays without the faff.
Has completely changed how I handle timesheets. Used to dread it every week — now it takes me minutes. Really easy to get around and my staff picked it up straight away.
Started using it just for rotas but quickly realised it does loads more. The timesheets and leave management are great, and it even handles TOIL and overtime which I wasn't expecting. Use it for everything now.
Everything you need to know about minimum wage in the UK. For related topics, try our hourly rate calculator or overtime pay calculator.
The National Living Wage (NLW) for workers aged 21 and over is £12.71 per hour from 1 April 2026. Workers aged 18–20 receive £10.85/hr, under-18s receive £8.00/hr, and apprentices receive £8.00/hr if they are under 19 or in their first year of apprenticeship. These rates are set by the Low Pay Commission and updated each April.
The National Living Wage (NLW) applies to workers aged 21 and over — it is the higher statutory rate at £12.71/hr from April 2026. The National Minimum Wage (NMW) refers to the lower rates that apply to younger workers (under 21) and apprentices. Both are legal minimums enforced by HMRC — paying below them is unlawful.
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. Since 1 October 2024, employers must also pass all tips directly to workers without deductions.
Basic pay, performance-related bonuses, and some allowances count towards minimum wage. The following do NOT count: tips and gratuities, premium pay for overtime or bank holidays (only the basic rate counts), benefits in kind such as accommodation above the permitted offset rate, employer pension contributions, and advance payments or loans.
Yes, but at a lower rate. Apprentices aged under 19, or aged 19+ who are in their first year of their apprenticeship, receive £8.00/hr from April 2026. Apprentices aged 19+ who have completed their first year are entitled to the standard NMW rate for their age group — so a 21-year-old apprentice in year two would receive £12.71/hr.
No. The National Minimum Wage does not apply to workers below school leaving age (typically 16). Once a worker is above school leaving age, they are entitled to the under-18 NMW rate of £8.00/hr from April 2026, even if they are still 16 years old.
The minimum wage must be met for every hour worked — including overtime. If overtime is unpaid or paid at a reduced rate, the total pay divided by total hours (including overtime) must never fall below the applicable NMW/NLW rate. If overtime causes the effective hourly rate to drop below minimum wage, the employer is breaking the law.
Certain deductions can reduce effective pay below minimum wage and make the employer non-compliant. Deductions for uniforms, tools, or equipment that bring pay below minimum wage are unlawful. Deductions for accommodation are allowed but only up to the permitted daily offset rate (£11.10/day from April 2026). Pension contributions, tax, and NI are permitted deductions.
Paying below the minimum wage is unlawful. HMRC can issue a notice requiring payment of arrears to workers, impose financial penalties of up to 200% of unpaid wages (minimum £100, maximum £20,000 per worker), and name employers publicly on the government's minimum wage naming scheme. Workers can also make a claim to an employment tribunal.
For part-time workers, divide total pay by total hours worked in the pay reference period. The result must be at or above the applicable NMW rate. For zero-hours workers, the same rule applies — every hour actually worked must be paid at or above minimum wage. Accurate time tracking records are essential to demonstrate compliance, especially during HMRC audits.
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