What is the Minimum Wage in London? National Rates and Take-Home Pay Explained

What is the Minimum Wage in London?

If you're asking what is the minimum wage in London, the short answer is that the minimum wage is a national rate set by the UK government. There is no separate London minimum wage. The National Living Wage (for workers aged 21 and over) and the National Minimum Wage (for younger workers and apprentices) apply equally in London as in any other part of the UK.

From April 2026, the National Living Wage is £12.71 per hour, up from £12.21. For 18 to 20 year olds it is £10.85, and for under-18s and apprentices it is £8.00. These rates are set by the government following recommendations from the Low Pay Commission.

Gross Pay vs Take-Home Pay

Understanding the difference between your gross salary and what actually lands in your bank account is essential. Gross pay is your total earnings before any deductions. Take-home pay (also called net pay) is what remains after income tax, National Insurance, and any other deductions such as pension contributions or student loan repayments.

For a full-time worker on the National Living Wage, working 37.5 hours per week, the annual gross pay is:

• £12.71 × 37.5 hours × 52 weeks = £24,784.50

From that, the deductions are:

• Income Tax: The first £12,570 is tax-free (Personal Allowance). The remaining £12,214.50 is taxed at 20%, giving £2,442.90.
• National Insurance: Employee NI is 8% on earnings above £12,570, so £977.16.
• Take-home pay: £24,784.50 – £2,442.90 – £977.16 = £21,364.44 per year, or about £1,780 per month.

These figures are for England, Wales, and Northern Ireland. In Scotland, the starter rate of 19% on the first £3,967 of taxable income means slightly lower income tax, so take-home is about £1,784 per month.

How London Compares

While the minimum wage is the same everywhere, London has a much higher average salary. According to the ONS Annual Survey of Hours and Earnings (ASHE) published in October 2025, the median full-time salary in London is £47,455 per year – about 22% above the UK median of £39,039.

On that London median salary, take-home pay (with no pension or student loan) is approximately:

• Gross: £47,455
• Income Tax: £6,977
• National Insurance: £2,791
• Take-home: £37,687 per year (£3,141 per month)

This is nearly double the take-home of a full-time minimum wage worker. However, the cost of living in London is also significantly higher, especially for housing and transport.

Other Deductions to Consider

Your actual take-home pay may be lower if you have:

• Pension contributions: Many workplace pensions deduct a percentage of your salary. A typical 5% employee contribution on NLW earnings would reduce take-home by about £1,240 per year.
• Student loan repayments: At NLW earnings, only Plan 5 (threshold £25,000) or a Postgraduate Loan (threshold £21,000) are likely to apply. At 37.5 hours per week, Plan 5 would not bite; at 40 hours (£26,437), you would repay about £10.78 per month.
• Salary sacrifice schemes: Things like cycle-to-work or childcare vouchers reduce your gross pay before tax, lowering your tax bill but also your take-home.

Using a Take-Home Calculator

To get a precise figure for your own situation, use our take-home calculator. It lets you enter your exact salary, hours, pension contributions, student loan plan, and tax code to see your net pay.

For more context on UK salaries, browse our salary articles covering everything from the National Living Wage to average pay by region and industry.

Summary

• The minimum wage in London is the same as the rest of the UK: £12.71/hr for 21+ (NLW), £10.85 for 18-20, £8.00 for under-18s and apprentices.
• Full-time NLW take-home is about £1,780 per month.
• London's median full-time salary is £47,455, giving take-home of about £3,141 per month.
• Always check your payslip and use official GOV.UK guidance for the most accurate deductions.