Minimum Wage Cost Calculator

The National Living Wage rose from £11.44 to £12.21/hr in April 2025 — a 6.7% increase. Enter your minimum-wage workforce to see the total payroll impact.

110200
837.548

Total Annual Payroll Increase

£15,015

+6.7% increase across 10 staff

Per employee increase£1,502/yr
Old annual cost (per person)£22,308
New annual cost (per person)£23,810

Monthly Payroll Increase

£1,251 /month

Rate Comparison

MetricBeforeAfter (Apr 2025)Change
Hourly rate (21+)£11.44£12.21+£0.77
Annual cost (37.5hrs/wk)£22,308£23,810+£1,502
Total (10 staff)£223,080£238,095+£15,015

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Frequently Asked Questions

What is the National Living Wage for 2025/26?
The National Living Wage for workers aged 21+ is £12.21 per hour from April 2025, up from £11.44 (a 6.7% increase).
Does it apply to all workers?
The NLW applies to workers aged 21+. Lower rates apply for 18-20 (£10.00), under 18 (£7.55), and apprentices (£7.55).
What happens if I don't pay the minimum wage?
HMRC can issue penalties of 200% of the underpayment (up to £20,000 per worker), name you publicly, and in serious cases pursue criminal prosecution.