What is the National Living Wage in 2025-26?

The National Living Wage (NLW) for workers aged 21 and over is £12.21/hour from April 2025. For 18-20 year olds it is £10.00/hr. These are the legal minimum wage rates — some employers pay a higher voluntary 'real living wage' set by the Living Wage Foundation (currently £13.85/hr outside London, £15.60/hr in London for 2025).

How much do you take home on the National Living Wage?

At £12.21/hr (37.5 hours/week = 1,950 hours/year), your gross annual pay is £23,810. After Income Tax and NI in England 2025-26, take-home is approximately £20,010/year (£1,668/month).

What is the difference between the National Living Wage and the Real Living Wage?

The National Living Wage (£12.21/hr) is the legal minimum enforced by HMRC. The Real Living Wage (£13.85/hr outside London) is a voluntary higher rate calculated by the Living Wage Foundation based on actual cost of living. Employers must pay the NLW; the Real Living Wage is voluntary.

Living Wage After Tax 2025-26

The Real Living Wage and London Living Wage are voluntary rates set by the Living Wage Foundation, higher than the statutory National Living Wage. Select your hours per week to see your exact take-home pay after Income Tax and National Insurance.

Living Wage Rates 2025-26 — vs NMW

Rate	Hourly	Weekly (40 hrs)	Annual gross	Annual take-home
London Living Wage	£13.85	£554.00	£28,808	£24,261
Real Living Wage	£12.60	£504.00	£26,208	£22,389
National Living Wage (Age 21+)	£12.21	£488.40	£25,397	—

Real Living Wage and London Living Wage rates apply from November 2024 (confirmed for 2024-25 cycle). Annual gross at 52 × 40 hours.

Real Living Wage — £12.60/hr

The Real Living Wage applies across the UK (outside London). It is a voluntary rate calculated based on the cost of living.

8 hrs/week £5,242/yr 10 hrs/week £6,552/yr 12 hrs/week £7,862/yr 15 hrs/week £9,828/yr 16 hrs/week £10,483/yr 20 hrs/week £12,954/yr 24 hrs/week £14,842/yr 25 hrs/week £15,313/yr 30 hrs/week £17,672/yr 35 hrs/week £20,031/yr 37.5 hrs/week £21,210/yr 40 hrs/week £22,389/yr 45 hrs/week £24,748/yr 48 hrs/week £26,164/yr

London Living Wage — £13.85/hr

The London Living Wage is a higher voluntary rate for workers in Greater London, reflecting the higher cost of living in the capital.

8 hrs/week £5,762/yr 10 hrs/week £7,202/yr 12 hrs/week £8,642/yr 15 hrs/week £10,803/yr 16 hrs/week £11,523/yr 20 hrs/week £13,890/yr 24 hrs/week £15,965/yr 25 hrs/week £16,483/yr 30 hrs/week £19,076/yr 35 hrs/week £21,669/yr 37.5 hrs/week £22,965/yr 40 hrs/week £24,261/yr 45 hrs/week £26,854/yr 48 hrs/week £28,410/yr

What is the Living Wage?

The Real Living Wage (£12.60/hr) and London Living Wage (£13.85/hr) are set annually by the Living Wage Foundation, an independent body. They are calculated based on what employees need to cover the basic cost of living — food, housing, transport, and other essentials. Accredited employers commit to paying these rates voluntarily; they are not a statutory requirement like the NMW/NLW.

Both the Real Living Wage and London Living Wage are higher than the statutory National Living Wage (£12.21/hr for age 21+). At the Real Living Wage working 40 hours a week, your annual gross is £26,208, which puts you into the 20% Income Tax bracket. You pay 8% National Insurance on earnings above £12,570.

Customising your take-home estimate

Each page uses the standard 2025-26 tax code (1257L), no pension auto-enrolment contributions, and no student loan. Use the interactive calculator on each page to model your actual take-home with pension deductions or a student loan plan. Pension contributions made via salary sacrifice also reduce your National Insurance liability.

Related calculators:

Minimum Wage After Tax Zero Hours Contract After Tax Hourly Rate Calculator Income Tax Rates 2025-26 National Insurance