Whether you’re in a new job, considering a career move, or just want to understand your rights better, knowing about minimum wage and living wage matters. These terms affect your income and quality of life, so let’s break down what they mean.
The National Minimum Wage
This the legal minimum amount that most workers in the UK are entitled to be paid per hour by their employer. It’s there to ensure that everyone gets a fair pay, regardless of age or industry. Often, it’s simply referred to as ‘minimum wage’.
You might also hear ‘National Living Wage’ – that’s the name given by the government to the minimum wage for workers aged 21 and over.
The rates change on 1 April every year, although the government often announce upcoming changes in the Autumn budget.
Current rates from April 2026:
Aged 21 and over:
£12.71
Aged 18 to 20:
£10.85
Aged under 18:
£8.00
Apprentice rate*:
£8.00
*The apprentice rate applies to apprentices under 19 OR in first year of apprenticeship. Apprentices over 19 AND have completed their first year of apprenticeship are entitled to the minimum wage for their age.
Your employer must pay you at least the minimum wage for your age group. It’s against the law not to.
Important: If you’re paid minimum wage, your employer can’t deduct costs for things like uniforms or training from your pay, or make you work unpaid overtime. Any of these would push your pay below minimum wage, which is against the law.
The Living Wage
The Living Wage, on the other hand, is a voluntary hourly rate set by the Living Wage Foundation based on the basic cost of living in the UK – it considers the amount needed for a worker to meet their basic needs and have a little extra for emergencies or to save for the future.
Unlike the National Minimum Wage, it’s not legally required, but many employers choose to pay it as a commitment to helping their workers afford a decent standard of living. So it’s often worth looking out for accredited Living Wage Employers when job hunting.
Current rates from October 2025:
UK-wide:
£13.45
London:
14.80
The Living Wage is reviewed and updated every year, so it’s worth keeping an eye on these changes too.
What’s the difference?
The key difference between the National Minimum Wage and the Living Wage lies in their purpose and how they’re calculated. The minimum wage is a legal minimum set by the government to prevent exploitation. The Living Wage is based on the real cost of living and is voluntarily paid by employers who want to go above and beyond legal requirements.
Annual salary comparison for 2025 rates (35-hour week, before tax)*:
21+ on minimum wage:
£23,100
UK Living Wage:
£24,500
London Living Wage:
£26,900
*Calculated: rate x 35hrs x 52wks, and rounded to nearest £100.
Why this matters to you
Understanding these figures affects your income and quality of life. Checking that you’re at least paid minimum wage ensures you’re not being exploited. Being paid the Living Wage can mean more financial security and breathing room.
If you think you might not be paid the National Minimum Wage, there’s some further info at the bottom of this article.
Knowing your rights empowers you at work. Whether you’re negotiating salary for a new role or discussing a pay rise, being informed gives you confidence to speak up and ensure you’re getting fair pay.
Three Top Tips
1. Know your rights
Familiarise yourself with the current National Minimum Wage rates for your age group. Know what you’re entitled to and speak up if you’re not being paid fairly. These rates change annually, so check them regularly.
2. Research employers
When job hunting, look out for employers who are accredited as Living Wage Employers. Being paid the Living Wage can noticeably improve your financial wellbeing and job satisfaction. You can search for accredited employers on the Living Wage Foundation website.
3. Track your hours
Keep a record of the hours you work to ensure you’re being paid accurately. If you notice differences between your pay and hours worked, raise it with your employer promptly. Remember – being asked to arrive 15 minutes early counts as work time and should be paid.
What if I’m being paid less than minimum wage?
If you believe you are being paid less than the minimum wage, take action:
- Check your payslip: Review it carefully to confirm you are being paid the correct hourly rate for your age group. Make sure to factor in any deductions or bonuses that may affect your overall pay. This article can help you work out what all the numbers on your payslip mean. You can also use this calculator by Gov.uk to help you work it out.
- Gather evidence: Keep records of your hours worked, including start and finish times, breaks and overtime. This documentation supports your claim if you need to take further action.
- Raise the issue with your employer: Schedule a meeting to discuss your concerns. Be polite but firm in presenting your evidence and explaining why you believe your pay is incorrect. They may have made an error or not be aware of current rates.
- Seek resolution: Give your employer a chance to fix the situation. Request back pay for any hours already worked below minimum wage.
- Seek external support: If your employer fails to address the issue or disputes your claim, call the ACAS helpline: 0300 123 1100. ACAS (Advisory, Conciliation and Arbitration Service) provides free, impartial advice on workplace rights. They’re an independent public body funded by government and can talk you through options including employment tribunals or HMRC involvement.
If in doubt, you can call ACAS (0300 123 1100) for advice at any stage of this process. They’ll help you work out what to do next.
Summary
While the National Minimum Wage sets the legal minimum wage that employers must pay, the Living Wage reflects the real cost of living in the UK and is voluntarily paid by some employers. Knowing both helps you make informed decisions about jobs, negotiate better pay, and spot when something’s not right.
Your time and work have value. Whether you’re paid minimum wage or living wage, make sure you’re getting what you’re entitled to – and don’t be afraid to speak up if you’re not.
Recommended Reading
How do I make a basic budget for myself?
