How to Calculate Your Minimum Salary in the UK

Working Out Your Legal Pay

Confused about whether your wages meet legal requirements? Calculating your minimum salary in the UK is simpler than you think with the right approach.

The Basic Formula

Your minimum annual salary depends on three factors:

1. Your age (determines hourly rate)

2. Hours worked per week

3. Weeks worked per year

Most full-time contracts specify 37.5 to 40 hours weekly. Multiply your hourly minimum wage by weekly hours, then multiply by 52 for your annual minimum salary.

Hourly to Annual Conversion

Let's break this down practically. If you're working full-time at 37.5 hours weekly on National Living Wage, you calculate: hourly rate × 37.5 × 52 weeks.

This gives you the absolute minimum your employer can legally pay annually before tax and National Insurance.

Part-Time Minimum Salary

Part-time workers use the same formula but with fewer hours. Working 20 hours weekly? Simply use 20 in your calculation instead of 37.5.

What Counts as Working Time?

Your minimum salary must cover:

• Time at your workplace or designated work location

• Required training sessions

• Business travel between sites

• Being "on call" at your workplace

Deductions and Your Minimum Wage

Certain deductions are illegal if they push your pay below minimum wage. These include:

• Uniform costs (if mandatory)

• Equipment you must purchase

• Till shortages

• Breakages

However, pension contributions and student loan repayments don't affect minimum wage calculations as they're post-pay deductions.

Checking Your Payslip

Your payslip should clearly show:

• Gross pay (before deductions)

• Hours worked

• Your hourly rate

Divide gross pay by hours to verify you're receiving at least minimum wage. If not, raise this immediately with your employer.

Salary vs Hourly Pay

Some roles offer annual salaries rather than hourly rates. Divide your annual salary by 52, then by your contracted weekly hours. This reveals your effective hourly rate, which must meet minimum wage.

When to Seek Help

If calculations show you're underpaid, don't panic. HMRC's National Minimum Wage helpline assists with queries and can investigate employers anonymously.

Understanding these calculations empowers you to spot underpayment quickly and assert your rights confidently.

For current rates and detailed examples of minimum salary calculations across different scenarios, visit the complete UK minimum salary guide.

Your time has value. Make sure you're paid for every hour worked.