Confused about the Minimum Wage and Living Wage? Our quick guide is here to help.

Some entry-level and junior jobs are advertised with a 'London Living Wage' or 'UK Living Wage' salary, but you'll also see mentions of 'real Living Wage' and 'National Living Wage'... so it can all get a bit confusing. Here's our guide to what these terms mean, and why it's important to understand them when you're navigating entry-level salaries.

The real Living Wage – made up of the UK Living Wage and the London Living Wage

• The real Living Wage is set by the Living Wage Foundation, based on the actual cost of living. The London Living Wage is based on the actual cost of living in London, and the UK Living Wage is based on the actual cost of living elsewhere in the UK.

  
  

• These rates of pay are voluntary – around 16,000 UK employers have signed a commitment to say they will never pay below the real Living Wage.

  
  

• Current UK Living Wage is £12.60 an hour (from October 2024)

  
  

• Current London Living Wage is £13.85 an hour (from October 2024)

  
  

• You can find out more about the Real Living Wage here.

National Minimum Wage and National Living Wage

• The National Minimum Wage is the government-set minimum rate of pay for people of different ages. For those aged 21 and above, it's known as the National Living Wage – so essentially this is just another name for the minimum wage.

  
  

• These are legal minimum rates of pay.

  
  

• The National Living Wage (for people aged 21+) is currently £12.21 an hour (reviewed every April)

  
  

• There's no different rate for London – it's a flat rate across the whole of the UK.

  
  

• You can see the current Minimum Wage for people of different ages here.

  
  

What do the Real Living Wage and National Living Wage look like as annual salaries?

Here's what you'd receive for a full-time job working 35 hours a week:

• At the National Living Wage (which is the government-set minimum wage for people aged 21 and above) you'll receive a salary of £22,222.

  
  

• At the UK Living Wage, you'll receive a salary of £22,932.

  
  

• At the London Living Wage you'll receive a salary of £25,207.

What should I be looking out for with entry-level salaries?

1. Any full-time job that has a salary of below £22,222 is below the legally required minimum wage for people aged 21 and above.

   
   

2. For full-time jobs outside of London, a salary of £22,932 would be below the UK Living Wage – and while paying the UK Living Wage is voluntary rather than mandatory, we recommend keeping this figure in mind when choosing which jobs to apply to.

   
   

3. For full-time London-based jobs, a salary of below £25,207 would be below the UK Living Wage – and while paying the UK Living Wage is voluntary rather than mandatory, we recommend keeping this figure in mind when choosing which jobs to apply to.