National Living Wage
The legally required minimum hourly rate that employers must pay workers aged 21 and over, set at £12.21 per hour from April 2025. Younger workers and apprentices have lower statutory minimums known as the National Minimum Wage. The National Living Wage is set annually by the government following recommendations from the Low Pay Commission.
Related Terms
Taxable Income
The portion of your total income that is actually subject to income tax after deducting the Personal Allowance and any other reliefs or deductions you are entitled to.
PAYE
Pay As You Earn — the system by which employers deduct income tax and National Insurance directly from employees' wages before paying them, and remit the deductions to HMRC on their behalf.