What Is Minimum Wage Salary in the UK?

When people ask what is minimum wage salary, they usually want to know how the hourly National Living Wage (NLW) or National Minimum Wage (NMW) translates into an annual figure. The answer depends on your age, your contracted hours, and whether you work in a region with additional allowances like London weighting. This article uses the latest official data from the Office for National Statistics (ONS) and NHS Employers to give you a clear picture.

Current National Living Wage and National Minimum Wage Rates

As of April 2025, the GOV.UK rates (confirmed by the ONS Annual Survey of Hours and Earnings) are:

• National Living Wage (21+): £12.21 per hour
• National Minimum Wage (18–20): £10.00 per hour
• National Minimum Wage (16–17): £7.55 per hour
• Apprentice rate (first year): £7.55 per hour

These rates are reviewed annually and typically rise each April. The NLW applies to all employees aged 21 and over, while younger workers and apprentices have separate, lower rates.

Converting Hourly Minimum Wage to Annual Salary

To find the annual equivalent of an hourly wage, use the formula:

Hourly rate × hours per week × 52 weeks

For a full-time employee working 37.5 hours per week (the standard NHS and many public sector contracts), the NLW annual salary is:

£12.21 × 37.5 × 52 = £23,809.50

If you work 40 hours per week, the figure rises to £25,396.80. Part-time workers can use the same formula with their actual weekly hours. Remember, this is gross pay before tax and National Insurance. Use our Hourly to Salary calculator to try different hours.

How Minimum Wage Compares to Median Earnings

The ONS ASHE 2025 report shows median full-time annual earnings of £39,039 and median hourly earnings of £19.67. The NLW of £12.21 is about 62% of the median hourly rate. The low-pay threshold (defined as two-thirds of median hourly pay) was £11.97 in April 2025, so the NLW sits just above that line. Only 2.5% of employee jobs were paid below £11.97, the lowest proportion on record.

For context, a full-time worker on the NLW earns roughly £15,230 less per year than the median worker. This gap highlights why many employees seek higher-paying roles or additional hours.

NHS Pay Scales and London Weighting

Public sector pay often sets a benchmark above the minimum wage. NHS Employers published pay scales for 2026/27 showing Band 1 (closed to new entrants) at £12.92 per hour. This is about 5.8% above the 2025 NLW. NHS staff in London also receive High Cost Area Supplements (HCAS): 20% of basic salary for inner London and 5% for outer London. For example, a Band 1 worker in inner London could see their effective hourly rate rise to around £15.50.

These supplements are not part of the statutory minimum wage, but they illustrate how location and employer can boost take-home pay. For more detailed pay data, visit our salary data page.

Important Caveats

• Hours assumptions: The annual figures above assume a steady contracted week with no unpaid overtime, bonus, tips, or salary sacrifice. Actual pay depends on your rota, holiday pay method, and overtime rules.
• Age and apprenticeship: Always check which rate applies to you. The NLW only covers those aged 21+. If you are 18–20, your minimum is £10.00 per hour.
• Annual changes: Minimum wage rates are updated each April. The 2025 rates will likely rise in 2026, so keep an eye on GOV.UK announcements.
• Contract vs. reality: Some employers pay above the minimum, while others may not comply. If you suspect underpayment, contact HMRC or ACAS.

Final Thoughts

Understanding what is minimum wage salary helps you evaluate job offers and negotiate pay. Whether you are comparing an hourly role with a salaried position or checking if your current wage meets legal requirements, the conversion formula and official benchmarks give you a solid starting point. Always verify with your contract and official guidance.

For more tools and articles, explore our Hourly to Salary calculator and salary data pages.