What is the UK minimum wage per year in 2024?

For a full-time worker aged 21 or over on the National Living Wage of £11.44 per hour, annual earnings on a standard 37.5-hour week come to roughly £22,308 before tax. Part-time hours reduce this significantly - a 20-hour week yields around £11,900 a year.

Is the National Living Wage the same as the Real Living Wage?

No, and the confusion is understandable. The National Living Wage is the government's statutory minimum - the legal floor employers must pay. The Real Living Wage is a voluntary rate set by the Living Wage Foundation, based on actual living costs. In 2024/25 it is £13.15 outside London and £15.65 in London - both higher than the legal minimum.

Do under-21s get the same minimum wage?

No. The National Living Wage (£11.44) only applies from age 21. Workers aged 18-20 have a lower statutory rate of £8.60 per hour. Under-18s and apprentices have their own lower rates. The government's rationale is productivity and training, though critics argue it creates a two-tier system for workers facing the same costs.

How does minimum wage compare to average UK earnings?

ONS ASHE data puts median full-time UK earnings well above the minimum wage, but the gap is smaller than people assume, and in sectors like hospitality, retail and care, minimum wage is effectively the standard rate rather than an edge case. Many workers sit just above the minimum without realising the market rate for their role might be higher.

If I earn just above minimum wage, how do I know if I'm being underpaid?

Clearing the legal minimum and being paid the market rate are two different things. Some employers default to minimum wage even in roles where comparable workers earn more. Rung's Salary Analytics shows your percentile position for your specific role and region using official ONS data, which is a more useful benchmark than the legal floor.

minimum wage · uk pay · salary basics · low pay

The UK Minimum Wage: What It Actually Pays Per Year

Rung·3 July 2026·4 min read

a pile of british coins sitting on top of a table — Photo by Sarah Agnew on Unsplash

Most people know the hourly rate. Far fewer have done the maths on what it means as an annual salary - and the gap between those two numbers tells you a lot about how low-wage work actually functions in the UK.

As of April 2024, the National Living Wage for workers aged 21 and over sits at £11.44 per hour. Work that across a standard 37.5-hour week and 52 weeks, and you land at roughly £22,308 a year before tax. That is the number worth keeping in your head.

Why the yearly figure matters more than the hourly one

Hourly rates are how employers think about labour costs. Yearly figures are how workers think about their lives - rent, bills, whether a pay rise actually changes anything. The government tends to announce minimum wage uplifts in percentage terms (the April 2024 rise was a chunky 9.8%), which sounds impressive until you realise it added roughly £2,000 to a full-time annual salary. Meaningful, yes. Life-changing, less so.

There is also the question of who actually works full-time at minimum wage. Many minimum wage jobs are part-time, zero-hours, or seasonal. A worker on 20 hours a week at £11.44 takes home closer to £11,900 a year - below the personal allowance threshold, which does at least mean they pay no income tax on it, but also means they are earning less than half of what most people picture when they hear "minimum wage job".

The age tiers most people forget

The National Living Wage only applies to workers aged 21 and over. Below that, different rates apply - and they drop noticeably. The rate for 18-to-20-year-olds is £8.60 per hour as of April 2024, which on full-time hours comes to around £16,770 a year. Apprentices get a separate, lower rate still.

This is one of the more quietly contested features of UK wage policy. The official logic is that younger workers are less productive and more likely to be in training. Critics point out that a 20-year-old paying rent faces identical costs to a 22-year-old. Both arguments have some merit, which is probably why the debate never quite goes away.

How minimum wage stacks up against typical UK earnings

ONS ASHE data - the most reliable source on what people in the UK actually earn - consistently shows median full-time earnings sitting well above minimum wage, but the distribution is skewed. A large chunk of the UK workforce earns within a few pounds per hour of the minimum. In sectors like hospitality, retail, and social care, minimum wage is not the floor for a small minority - it is the going rate for most of the workforce.

If you want to know where a specific role or region sits relative to the wider distribution, Rung's Salary Analytics pulls directly from official ONS data so you can see your actual percentile rather than guessing.

The living wage confusion

One thing that trips people up: the "National Living Wage" is the government's statutory minimum, not the independently calculated Living Wage. The Living Wage Foundation sets a separate voluntary rate - £13.15 per hour outside London, £15.65 in London as of 2024/25 - based on what a basket of living costs actually requires. Employers who pay it can accreditate as Living Wage employers. Many do not.

The naming is a genuine source of confusion, and arguably not accidental. Calling the statutory minimum a "living wage" implies it is sufficient to live on. Whether £22,308 a year in, say, Bristol or Birmingham actually covers rent, food, transport, and a modest buffer is a question the data alone cannot answer - though most people's instinct is that it is tight.

What this means if you're earning near the minimum

If your pay is at or just above minimum wage, the most useful thing you can do is understand whether your employer is paying the market rate for your specific role - or just clearing the legal bar. Those are not always the same thing. Some employers use minimum wage as a default even in roles where market rates are higher. That gap is negotiable, but you need the data to make the case.

For that, the place to start is checking where you sit in the actual distribution for your job title and region.

Frequently asked questions

What is the UK minimum wage per year in 2024?: For a full-time worker aged 21 or over on the National Living Wage of £11.44 per hour, annual earnings on a standard 37.5-hour week come to roughly £22,308 before tax. Part-time hours reduce this significantly - a 20-hour week yields around £11,900 a year.
Is the National Living Wage the same as the Real Living Wage?: No, and the confusion is understandable. The National Living Wage is the government's statutory minimum - the legal floor employers must pay. The Real Living Wage is a voluntary rate set by the Living Wage Foundation, based on actual living costs. In 2024/25 it is £13.15 outside London and £15.65 in London - both higher than the legal minimum.
Do under-21s get the same minimum wage?: No. The National Living Wage (£11.44) only applies from age 21. Workers aged 18-20 have a lower statutory rate of £8.60 per hour. Under-18s and apprentices have their own lower rates. The government's rationale is productivity and training, though critics argue it creates a two-tier system for workers facing the same costs.
How does minimum wage compare to average UK earnings?: ONS ASHE data puts median full-time UK earnings well above the minimum wage, but the gap is smaller than people assume, and in sectors like hospitality, retail and care, minimum wage is effectively the standard rate rather than an edge case. Many workers sit just above the minimum without realising the market rate for their role might be higher.
If I earn just above minimum wage, how do I know if I'm being underpaid?: Clearing the legal minimum and being paid the market rate are two different things. Some employers default to minimum wage even in roles where comparable workers earn more. Rung's Salary Analytics shows your percentile position for your specific role and region using official ONS data, which is a more useful benchmark than the legal floor.