London Living Wage Calculator & Guide
Find out the current London Living Wage rate, how it compares to the statutory National Living Wage, and how to work out your gross annual salary from it.
Understanding the London Living Wage
The London Living Wage is a voluntary hourly rate, independently calculated to reflect the real cost of living in the capital. It is set by the Living Wage Foundation and paid by employers who choose to become accredited Living Wage employers.
Key Facts About the London Living Wage
Everything you need to know about the current rate
The Current Rate
The London Living Wage for 2025-26 is £14.80 per hour, announced by the Living Wage Foundation on 22 October 2025. This is up from the previous rate of £13.85, a rise of 6.9%. Accredited employers have until 1 May 2026 to implement it.
Voluntary, Not a Legal Minimum
Unlike the National Living Wage, the London Living Wage is not enforced by law. It is a voluntary commitment made by employers who choose to be accredited by the Living Wage Foundation.
How It’s Calculated
The rate is calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, based on the real cost of essentials such as rent, food, transport, and energy in London.
Working Out Your Annual Salary
To estimate gross annual salary from the hourly rate, multiply the rate by your weekly hours, then by 52 weeks. For a standard 37.5-hour week, £14.80 an hour works out to roughly £28,860 a year, before tax.
London Living Wage Quick Facts
Key figures at a glance
How to Calculate Your Salary on the London Living Wage
Working out your gross salary from the hourly rate takes just a couple of simple steps.
Confirm Your Weekly Hours
Check your contracted weekly hours. Full-time roles are commonly 35, 37.5, or 40 hours per week, so confirm the exact figure in your contract.
Multiply by the Hourly Rate
Multiply your weekly hours by £14.80 to get your gross weekly pay. For example, 37.5 hours × £14.80 gives £555 per week.
Scale Up to a Year
Multiply your weekly pay by 52 to get your gross annual salary. At 37.5 hours a week, this gives approximately £28,860 a year before tax and National Insurance.
Deduct Tax and National Insurance
Your take-home pay will be lower than the gross figure once Income Tax and National Insurance are applied, based on your personal tax code and allowances for the current tax year.
London Living Wage vs Other UK Rates
A side-by-side summary of the London Living Wage against other current UK wage benchmarks.
| Rate | Hourly Amount | Legal Status |
|---|---|---|
| London Living Wage (2025-26) | £14.80 | Voluntary, Living Wage Foundation |
| UK Living Wage (2025-26) | £13.45 | Voluntary, Living Wage Foundation |
| National Living Wage (from Apr 2026, age 21+) | £12.71 | Statutory legal minimum |
| 37.5hr/week gross salary at London Living Wage | ≈£28,860/year | Before tax and NI |
London Living Wage FAQ
Answers to the most frequently asked questions about the London Living Wage.
The London Living Wage for 2025-26 is £14.80 per hour, announced by the Living Wage Foundation on 22 October 2025. Accredited employers have until 1 May 2026 to implement the new rate for their staff.
No. The London Living Wage is a voluntary rate set by the Living Wage Foundation, not a legal minimum. The only legally required minimum in the UK is the National Living Wage, set by the government, which is separate and generally lower.
The National Living Wage is the government’s statutory minimum wage for workers aged 21 and over, and applies UK-wide. The London Living Wage is a voluntary, independently calculated rate specific to London, based on the real cost of living in the capital, and is typically higher than the National Living Wage.
The rate is calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, based on the real cost of essentials such as rent, food, transport, and energy in London, ensuring workers can afford a basic standard of living.