National Living Wage Calculator, 2026/27
For any director employing staff aged 21 or over, the National Living Wage is the legal pay floor that cannot be ignored. Enter hours worked and a proposed rate to check compliance and see the annual cost of employing at that rate.
The national living wage calculator runs on the rates and thresholds HMRC has published for the 2026/27 tax year, so the figures you see reflect the position your company is actually filing on rather than a historic set of bands. Change any input and the result recalculates immediately, with no sign-up and nothing sent anywhere.
If you are a director of a UK limited company, use it as a first look before a decision rather than as the decision itself. National Living Wage for 2026/27 is £12.71 an hour for workers aged 21 and over, effective from 1 April 2026. Real company positions bring in other income, reliefs, group structures and prior year adjustments that a single page of inputs cannot see, which is why the workings are written out below under payroll, paye & employment. Read those, then check the numbers against your own accounts, and speak to us if anything looks materially different from what you expected.
Last reviewed 12 September 2026 for the 2026/27 tax year. Reviewed by Waqas Sagar, Member of ICAEW, Fellow of ACCA, Fellow of AAT.
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Result, 2026/27
National Living Wage weekly pay (minimum)
Proposed rate weekly pay
Annual pay at proposed rate
Shortfall versus NLW
Illustration only, figures are based on the rates you have selected and the information entered. Please check your own position with us before acting.
Estimates for the 2026/27 tax year using published GOV.UK rates. Switch between 2026/27 and 2025/26 above.
How this is calculated
The National Living Wage of £12.71 an hour applies to every worker aged 21 or over, regardless of experience or role, replacing what used to be a separate lower "adult rate" band once the age threshold was reduced from 23 to 21. This calculator multiplies that rate by hours worked to give the statutory minimum weekly figure, then compares it against a proposed rate to flag any shortfall.
Annual pay at the proposed rate is calculated on a straightforward 52-week basis, useful for budgeting the full-year cost of a role, though actual annual pay will differ slightly for anyone taking unpaid leave or working a genuinely variable number of weeks.
Because the National Living Wage rises each 1 April, it is worth rechecking any fixed hourly rate at least annually, since a rate that was compliant last year may fall below the new minimum without any change in what the employer is actually paying.
Who the National Living Wage applies to
Anyone aged 21 or over who is a worker, not just an employee, is entitled to at least the National Living Wage, including most agency workers, casual staff and those on zero-hours contracts, with narrow exceptions such as genuinely self-employed contractors and certain apprentices in their qualifying period.
Company directors who are also employees of their own company on a genuine employment contract are, in principle, subject to the same minimum wage rules, though in practice enforcement against owner-directors is rare where pay decisions reflect the company's own profits rather than exploitation.
Budgeting for the National Living Wage in a small business
Because the rate applies uniformly across the 21-plus workforce, businesses with several staff at or near the minimum should budget for the annual April increase in advance, since it applies to existing staff immediately, not just new hires.
Pairing this calculator with a wider payroll cost review, including employer NIC and pension contributions on the higher pay, gives a more complete picture of the true cost of an April rate rise.
What this means for your company
Treat the result as a planning figure for the 2026/27 tax year. If it changes what you were about to do, take a director's salary, a dividend, a large asset purchase or a filing decision, check it against your own accounts first. We can review the position with you and confirm the tax treatment before you commit.
Frequently asked questions
What is the National Living Wage for 2026/27?
£12.71 an hour for all workers aged 21 and over, effective from 1 April 2026.
Is the National Living Wage the same as the National Minimum Wage?
The National Living Wage is simply the name for the top band of the National Minimum Wage, which applies to workers aged 21 and over. Younger age bands and apprentices have their own separate, lower rates.
Does the National Living Wage apply to part-time staff?
Yes, it applies per hour worked regardless of whether someone works full time or part time; there is no reduced hourly rate for part-time hours.
When does the National Living Wage rate change?
It normally changes on 1 April each year, following an annual announcement, so employers should review pay rates for all staff aged 21 and over ahead of that date.
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