How this is calculated
£12.71 per hour is the National Living Wage (NLW) for workers aged 21 and over from April 2026 — the statutory minimum that most adult employees in the UK must be paid. It’s set annually by the Government on the recommendation of the Low Pay Commission. For 2025 the NLW was £11.44, so this represents an 11% uplift. The NLW is higher than the voluntary Real Living Wage of £13.45/hr (set independently by the Living Wage Foundation) but below the London Living Wage of £14.80/hr, which reflects the higher cost of living in the capital.
On a gross annual salary of £24,785, HMRC deducts £2,443 in income tax and £977 in employee National Insurance for 2026/27 — leaving a take-home of £21,364 per year, or roughly £1,780 per month.
The first £12,570 of income is tax-free (the personal allowance). Earnings between £12,571 and £50,270 are taxed at 20%; between £50,271 and £125,140 at 40%; and above £125,140 at 45%. Employee National Insurance is 8% on earnings between £12,570 and £50,270 and 2% above that.
Working 40 hours vs 37.5 hours
These figures assume a 37.5-hour working week. At 40 hours per week the annual gross rises to £26,437. After tax and NI the take-home at 40 hours is approximately £22,554 per year.