1. What is the UK Living Wage?

The UK Living Wage is an independently calculated hourly rate of pay that is based on the cost of living. For 2025, the rate is set at £11.44 per hour across the UK. This is higher than the government's National Living Wage and is calculated by the Living Wage Foundation.

2. How the Calculator Works

The calculator uses the following formulas:

Where:

• 11.44 — Living Wage rate (GBP per hour)
• Hours Worked — Weekly working hours
• Weeks Worked — Number of weeks worked per year

3. Importance of the Living Wage

Details: The Living Wage ensures workers earn enough to meet everyday needs. Over 14,000 UK employers voluntarily pay this rate, which helps reduce in-work poverty and improves employee wellbeing and productivity.

4. Using the Calculator

Tips: Enter your typical weekly working hours and number of weeks you work per year (default is 52 weeks). The calculator will show your estimated earnings at the 2025 Living Wage rate.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between Living Wage and National Living Wage?
A: The government's National Living Wage is a legal minimum for over-23s (£10.42 in 2023/24). The real Living Wage is higher and voluntarily paid by employers.

Q2: Does the Living Wage vary by location?
A: In 2025, the rate is the same across the UK. Previously, London had a higher rate to account for higher living costs.

Q3: Who calculates the Living Wage?
A: The Living Wage Foundation, based on detailed analysis of living costs by the Resolution Foundation.

Q4: Are there plans to increase the Living Wage?
A: The rate is reviewed annually in November based on living cost changes.

Q5: How many people earn below the Living Wage?
A: About 1 in 9 workers (3.8 million people) earn less than the Living Wage.