National Living Wage: 21 and Over

All Minimum Wage Rates 2025/26

National Living Wage in Practice

The National Living Wage of £12.21 per hour applies to all workers aged 21 and over from April 2025. Working a standard 37.5-hour week, this produces a gross annual salary of £23,810. After income tax of £2,248 and National Insurance of £899, your monthly take home is approximately £1,722. You fall entirely within the basic rate tax band, and your effective tax rate is just 13.2% — meaning you keep nearly 87p of every pound earned.

At this income level, you may also be eligible for Universal Credit to supplement your earnings, particularly if you have children or high housing costs. The work allowance and taper rate mean additional hours of work always increase your total income. Consider checking your eligibility through gov.uk. If your employer offers overtime, additional hours at £12.21/hr are taxed at the same 20% basic rate, giving you about £9.77/hr net for every extra hour worked. See our £24,000 salary breakdown for a detailed annual view.