The National Living Wage (NLW) is the highest tier of the government minimum wage. It is applied to workers aged 21 and over as it is calculated to reflect the cost of living. National Minimum Wage (NMW) is applied to younger workers (20 and under) and apprentices.
Every year on the first of April, the NLW and NMW increase. As of 2026, this stands at:
- £12.71 an hour for 21 year olds and over
- £10.85 an hour for 18-20 year olds
- £8 an hour for under 18s and apprentices
This saw an increase in wages ranging from 4.1% to 8.5% compared to 2025.
Is the National Living Wage Relevant?
The NLW and NMW is set by the government who get their recommendations from the Low Pay Commission (LPC), an Independent advisory body created to advise the government on wage rates.
However, a voluntary company called the Real Living Wage Foundation independently calculates the cost of living which they believe is £13.45. So, is the NLW relevant?
Yes, it is relevant. The LPC determines the minimum wage required for the cost of living and this is who is responsible for advising the government. The Real Living Wage Foundation have no bearing on employment law.
The NLW was created as a separate tier to NMW to ensure low-paid workers are paid fairly and help people meet their household needs, reducing the amount of people relying on government support.
Advice on Employment Law
The Government website provides a series of calculators to check if businesses are paying employees enough or if employees are paid enough. You can find these calculators here and a full table of the rates are available by clicking here.
All employers must pay the NLW, as a minimum, to any employee who is 23 or over and NMW for anyone below this. There have been quite a lot of prosecutions for businesses that are not paying properly and also naming and shaming on a website, so it is vitally important that you make sure that your business is compliant.
The experts a Premier Legal LLP can advise you on all aspects of employment law and HR to make sure that you don’t fall foul of constantly changing regulations.
We can also offer an insurance backed retainer scheme, Premier Total Cover, so that you have a specialist employment lawyer on the end of a phone 24/7 – Click here for more information on Premier Total Cover
Premier Legal LLP cover the entire country from offices in the Midlands and London.
You can contact Premier Legal LLP at the Nottingham Head Office by calling 0115 856 1625.
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sarahrobinson@premier-legal.co.uk
Sarah Robinson is the Managing Partner and has specialised exclusively in employment law since qualifying as a solicitor in 1996.
Sarah has considerable experience of representing clients in many different industry sectors including insurance and financial services, corporate finance, technology, legal services, automotive, hotel and catering and media as well as the public sector.
Areas of particular interest include restrictive covenants, TUPE and advising in relation to discrimination.