Your Guide to the UKs National Living Wage: What You Need to Know
The National Living Wage is a vital part of the UK's pay structure. Discover the current rates, eligibility, and how it differs from the National Minimum Wage.
The National Living Wage (NLW) is a cornerstone of employment law in the UK, setting the legal minimum hourly pay for millions of workers. It's a crucial component of the country's economic landscape, designed to ensure that a basic standard of pay keeps pace with living costs. But what exactly is it, who is entitled to it, and what are the current rates?
What is the National Living Wage?The National Living Wage is the highest rate of the National Minimum Wage (NMW), a legally mandated hourly pay rate set by the UK government. Introduced in 2016, it initially applied to workers aged 25 and over. From April 2024, the age threshold was lowered, and it now applies to all workers aged 21 and over.
The NLW is distinct from the voluntary Real Living Wage, which is calculated independently based on the actual cost of living. While the Real Living Wage is a benchmark that many employers choose to follow, the National Living Wage is a legal requirement.
Current Rates and EligibilityAs of April 2025, the National Living Wage is set at £12.21 per hour. This rate applies to all workers in the UK who are aged 21 and over.
It's important to note the difference in rates for different age groups under the National Minimum Wage framework:
Aged 21 and over: £12.21 (National Living Wage)
Aged 18 to 20: £10.00
Under 18: £7.55
Apprentices: £7.55 (This rate applies to apprentices under 19, or those in their first year of an apprenticeship, regardless of age.)
Who is Eligible for the National Living Wage?Eligibility for the NLW is broad, covering almost all workers in the UK who meet the age criteria. This includes full-time, part-time, casual, and agency workers. An employment contract stating a lower wage is not legally binding; the worker is still entitled to the correct statutory minimum.
The rules also apply to apprentices. An apprentice aged 19 or over who has completed the first year of their apprenticeship is entitled to the full National Living Wage rate for their age group.
There are a few limited exceptions where the NLW does not apply, such as for the genuinely self-employed, company directors, and volunteers.
What to Do If You're Not Being Paid CorrectlyIt is illegal for an employer to pay below the National Living Wage. If you believe you are not receiving the correct pay, it's crucial to take action. You can start by checking your pay using the official government calculator. If you find you have been underpaid, you should speak to your employer. If the issue is not resolved, there are official helplines and services that can provide guidance and help you reclaim the wages you are legally owed.
Understanding the National Living Wage is essential for both employees and employers. It provides a baseline for fair pay and is a key factor in financial planning and business operations.
Your Guide to the UKs National Living Wage: What You Need to Know