Minimum Wage vs Real Living Wage in the United Kingdom

Introduction

If you work part-time, pick up shifts, or juggle more than one job, the difference between the legal minimum wage and the voluntary Real Living Wage in the UK really matters. Both affect your hourly earnings, your rights at work, and how much you actually take home.

This article focuses on the 2025–26 rates and shows how they play out in realistic weekly patterns, so you can sense-check whether you are being paid at least what the law requires – and what a Real Living Wage employer would pay.

What are the current rates?

Statutory minimum wage / National Living Wage (legal minimum)

From 1 April 2025, the government-set National Living Wage (NLW) rate for workers aged 21 and over is £12.21 per hour for workers aged 21 and over.

There are lower statutory minimum wage bands for younger workers and apprentices. These change over time, so you should always check the latest official rates on the GOV.UK minimum wage pages.

These statutory rates are legally enforceable for workers who qualify under the National Minimum Wage Act 1998. If you are on a zero-hours contract, you may still qualify as a “worker”, whereas many genuinely self-employed people and some contractors are outside the scope.

Real Living Wage (voluntary but higher)

The Living Wage Foundation’s calculation of the Real Living Wage takes into account typical living costs. For the 2025–26 rate cycle, the announced rates are:

£13.45 per hour across the UK (outside London)
£14.80 per hour in London

These Real Living Wage rates are not prescribed by law. Employers that commit to them are choosing to set a higher standard of pay that reflects living costs more closely than the legal minimum.

Why this distinction is important

Statutory minimum wage – sets a legal floor for hourly pay for workers covered by minimum wage law.
Real Living Wage – sets a voluntary benchmark that may better reflect what workers need to live on.
Shift-pattern impact – for someone working shift patterns or part-time hours, the difference between £12.21 and £13.45 (or £14.80 in London) can add up quickly over a year – but only the statutory minimum is legally enforced, so you need to check whether your employer has committed to the Real Living Wage.

Scenario 1: 37.5-hour week under full-time status

Next, we will make a comparison of paying the statutory minimum and real living wage on a normal 37.5-hour week (for those aged 21+, outside London).

Rate Type	Hourly	Weekly (37.5h)	Approx. Annual (Gross)
Statutory Minimum	£12.21	£12.21 × 37.5 = ~ £458	~ £23,800
Real Living Wage	£13.45	£13.45 × 37.5 = ~ £504	~ £26,200

This signifies a £2,400 gross worth in one financial year (before tax, National Insurance, holidays or holidays). This difference exponentially grows if you stretch your workdays further or work extra work shifts.

Scenario 2: Shifts (evenings and weekends)

Consider the instance where you put in 4 × 10-hour shifts (40 hours/week) with some evening and weekend shifts.

Minimum wage

Hourly: £12.21
Weekly: 40 × £12.21 = £488.40
Approx. annual (gross): ~ £25,400

Living wage

Hourly: £13.45
Weekly: 40 × £13.45 = £538
Approx. annual (gross): ~ £28,000 The importance of shift patterns
Evening or weekend work may not necessarily attract pay higher than your contracted rate, unless a “premium” or uplift is written into your contract or workplace policy.
Salaried workers or workers who receive stable pay by default could face a drop in their effective hourly rate when their working time becomes irregular or increases.
Keeping good records of your total working time – including training, prep work and some unpaid travel – can help you check whether your employer is honouring at least the legal minimum wage.

Checklist for your rights

Refer to this list to confirm whether you have received the proper pay:

Know your age band – The legal minimum rate depends on your age and whether you are an apprentice.
Review your hourly earnings – If you are 21 or over and qualify as a worker, from 1 April 2025 your hourly pay should be at least £12.21 before tax and National Insurance.
Note all working hours – Time spent in mandatory training, on-site work, some waiting time and certain types of travel can count as working time when checking National Minimum Wage compliance.
Review any shift uplifts or shift premiums – Working late, working over weekends or working antisocial hours can be compensated under your contract, but there is no automatic legal requirement for a premium unless it is agreed.
Check for Real Living Wage accreditation – The Living Wage Foundation’s accredited employer list shows which employers commit to pay at least £13.45 per hour (outside London) or £14.80 per hour (London) for 2025–26 to eligible staff.
Examine employment status – Many employees and “workers” are covered by minimum wage law; many genuinely self-employed contractors or some gig-workers are not. Check whether you are “employed”, a “worker” or “self-employed” using official guidance.
Examine payslips and deductions – Work out your real hourly rate by dividing your gross pay by your total hours worked. If this appears to fall below the legal minimum, raise it with your employer and consider seeking advice if it is not resolved.

What to do if you think you have been underpaid

Raise it informally first — Payroll errors do happen, and many employers will correct genuine mistakes once you flag them.
Gather proof — Keep copies of timesheets, rota records, payslips, your employment contract, and emails or messages about shifts or training.
Consult experts — Organisations such as ACAS and HMRC provide guidance on National Minimum Wage issues and routes to raise concerns.
Review whether the arrangement works for you — If you regularly do unsocial hours without any premium, it may still be lawful, but you can decide whether it makes sense for your household budget.

The importance of the baseline for gig-economy workers and the self-employed

If you charge a flat fee per assignment, track all the hours you spend (preparation, administration, travel, client time and reporting). Your true hourly rate may otherwise fall below both the legal minimum for workers and the Real Living Wage benchmark.
Multiple gigs or shift-based work (hospitality, events, delivery) might not include overtime or unsocial-hours premiums unless agreed, but if you legally count as a “worker”, minimum wage rules can still apply.
Knowing current minimum and Real Living Wage rates helps you judge whether a contract or platform pays enough once you factor in your time and costs – and whether you need to negotiate or change your approach.

Conclusion

For workers aged 21 and over in the United Kingdom, the legal minimum from 1 April 2025 is £12.21 per hour (National Living Wage). The Real Living Wage for 2025–26 is higher, at £13.45 per hour across the UK and £14.80 per hour in London.

Knowing these rates – and how shifts, overtime, travel and unpaid time affect your effective hourly pay – is a key part of checking whether your pay is both lawful and fair.

Have a look at the salary calculator with your hours, shift pattern and wage to see how they translate into estimated take-home pay and to test different scenarios.

Minimum Wage vs Real Living Wage UK: Rates & Shift-Pattern Impact