At the Real Living Wage of £14.10 an hour, a 40 hour week is £29,328 a year. After income tax and National Insurance you take home £24,636 (£2,053 a month).
There are two "living wages" in the UK. The National Living Wage is the legal minimum for workers aged 21 and over. The Real Living Wage is a higher, voluntary rate paid by employers accredited with the Living Wage Foundation. Annual pay assumes the same hours for 52 weeks, with no overtime, pension contributions or student loan.
| Rate | Hours a week | Gross a year | Income tax | National Insurance | Take-home a year | Take-home a month | Take-home an hour |
|---|---|---|---|---|---|---|---|
| National Living Wage (legal minimum, 21 and over) £12.71 an hour | 37.5 | £24,785 | £2,443 | £977 | £21,364 | £1,780 | £10.96 |
| National Living Wage (legal minimum, 21 and over) £12.71 an hour | 40 | £26,437 | £2,773 | £1,109 | £22,554 | £1,880 | £10.84 |
| Real Living Wage, UK £14.10 an hour | 37.5 | £27,495 | £2,985 | £1,194 | £23,316 | £1,943 | £11.96 |
| Real Living Wage, UK £14.10 an hour | 40 | £29,328 | £3,352 | £1,341 | £24,636 | £2,053 | £11.84 |
| Real Living Wage, London £15.45 an hour | 37.5 | £30,128 | £3,512 | £1,405 | £25,211 | £2,101 | £12.93 |
| Real Living Wage, London £15.45 an hour | 40 | £32,136 | £3,913 | £1,565 | £26,658 | £2,221 | £12.82 |
| Step | Amount |
|---|---|
| Gross salary | £29,328.00 |
| Personal Allowance (tax-free) | £12,570.00 |
| Taxable income | £16,758.00 |
| Basic rate: £16,758.00 at 20% | £3,351.60 |
| Income tax | £3,351.60 |
| National Insurance: (£29,328.00 minus £12,570.00) at 8% | £1,340.64 |
| Total income tax plus National Insurance | £4,692.24 |
| Take-home pay | £24,635.76 |
This splits the £4,692 paid by a full-time worker on £14.10 an hour (40 hours) using HM Treasury's 2025-26 spending figures, adjusted for England.
| Area of spending | Share | Your £4,692 a year | Per month |
|---|---|---|---|
| Social protection | 32.9% | £1,543 | £128.56 |
| Health | 21.2% | £996 | £83.01 |
| Debt interest | 10.8% | £508 | £42.31 |
| Education | 10.1% | £476 | £39.68 |
| Economic affairs | 7.5% | £354 | £29.49 |
| Defence | 5.4% | £255 | £21.24 |
| Public order and safety | 4.5% | £213 | £17.79 |
| Other public services | 2.9% | £137 | £11.43 |
| Housing and community | 1.6% | £77 | £6.38 |
| Environment | 1.6% | £75 | £6.23 |
| Culture and recreation | 1.3% | £59 | £4.90 |
| Total | 100.0% | £4,692 | £391.02 |
| Rate | Hourly | Applies from | Status |
|---|---|---|---|
| National Living Wage (21 and over) | £12.71 | 1 April 2026 | Legal minimum |
| Real Living Wage, UK | £14.10 | 15 October 2026 | Voluntary |
| Real Living Wage, London | £15.45 | 15 October 2026 | Voluntary |
Sources: GOV.UK, National Minimum Wage and National Living Wage rates; MoneySavingExpert, Real Living Wage increase (October 2026); Living Wage Foundation. The Real Living Wage covers workers aged 18 and over.
Related: tax on the minimum wage, tax on £30,000, tax on £35,000.
There are two. The National Living Wage is the legal minimum for workers aged 21 and over, £12.71 an hour from 1 April 2026. The Real Living Wage is a voluntary rate set by the Living Wage Foundation: £14.10 an hour across the UK and £15.45 in London from 15 October 2026.
At £14.10 an hour for 40 hours a week (£29,328 a year) you pay £3,352 income tax and £1,341 National Insurance, £4,692 in total, in England, Wales or Northern Ireland with tax code 1257L. On 37.5 hours (£27,495 a year) the total is £4,179.
On £14.10 an hour for 40 hours, take-home pay is £24,636 a year, or £2,053 a month. On the London rate of £15.45 for 40 hours it is £26,658 a year, or £2,221 a month.
No. It is voluntary and employers choose to be accredited. The legal minimum for over 21s is the National Living Wage. The Living Wage Foundation asks accredited employers to adopt the new rates as soon as possible and by 1 May 2027.
For a 40 hour week, £14.10 an hour takes home £2,082 a year more than £12.71 an hour, after tax and National Insurance, on £2,891 more gross pay.
This is an estimate for an employee with one job, tax code 1257L, no pension contributions, student loan or other income. Scotland has different income tax bands. Use the calculator to see Scotland or other tax codes.