New Minimum Wage October 2025: Myths About Hourly Pay and Overtime in the UK

If you’ve been searching for the “new minimum wage October 2025”, you’re not alone. Many UK workers expect wage changes to happen in autumn, but the reality is different. The National Minimum Wage (NMW) and National Living Wage (NLW) are updated every April, not October. So the rates in force from April 2025 will remain until March 2026. This article clears up common myths about hourly pay, overtime, and how to convert your hourly rate into an annual salary.

What is the ‘New’ Minimum Wage in October 2025?

There is no new minimum wage in October 2025. The most recent change took effect on 1 April 2025. For employees aged 21 and over, the National Living Wage is £12.21 per hour. For 18 to 20 year olds it’s £10.00 per hour, for under 18s it’s £7.55 per hour, and for apprentices it’s £7.55 per hour (unless they are aged 19 or over and past the first year, in which case they are entitled to the rate for their age). These figures come from GOV.UK National Living Wage rates.

The next increase is scheduled for 1 April 2026, when the 21+ rate will rise to £12.71 per hour. So if you’re looking for a “new minimum wage” in October, you’re actually looking at the April 2025 rates that are already in place.

Common Myths About Hourly Pay and Overtime

Myth 1: Overtime is always paid at time-and-a-half

There is no UK law that says overtime must be paid at a premium rate. Your contract of employment determines whether overtime is paid and at what rate. Many employers do offer 1.5x or even double time for overtime, but others may pay only the basic hourly rate or offer time off in lieu. The only legal requirement is that your average hourly pay across the pay period does not fall below the National Minimum Wage. Always read your contract carefully.

Myth 2: The minimum wage applies to everyone

The NMW and NLW have age bands. Workers under 18, apprentices, and those aged 18–20 have lower minimum rates. Also, some groups like volunteers, self-employed people, and company directors are not entitled to the minimum wage. The ONS Low and High Pay bulletin for 2025 notes that around 447,000 employee jobs were estimated to be paid below the NMW/NLW, but this is not necessarily non-compliance – some workers may receive accommodation that offsets the hourly rate.

Myth 3: Annual salary is just hourly rate × 40 hours × 52 weeks

Many full-time roles in the UK are based on a 37.5-hour week, not 40. The ONS ASHE uses 30+ hours per week as the threshold for full-time (except for teachers). A more accurate conversion for a standard working week is: hourly rate × contracted hours per week × 52 weeks. For example, the NLW of £12.21 per hour for a 37.5-hour week gives an annual salary of about £23,809.50. If you work 40 hours, it would be £12.21 × 40 × 52 = £25,396.80. Use our Hourly to Salary tool for a quick calculation.

Myth 4: London weighting is included in the minimum wage

The National Living Wage and National Minimum Wage are the same across the whole of the UK. London weighting is an additional allowance that some employers offer to cover higher living costs in the capital. It is not a legal requirement. The Real Living Wage, set by the Living Wage Foundation, is higher in London (£13.85 in 2025/26) than outside (£12.60), but this is voluntary.

How Hourly Pay Relates to Annual Salary

Understanding the conversion is essential for job seekers and employees comparing offers. The standard formula is:

Annual salary ≈ hourly rate × hours per week × 52 weeks

But be aware of the following:

• Overtime: If you regularly work extra hours, your actual annual earnings may be higher than the basic calculation. However, if overtime is unpaid, your effective hourly rate could be lower.
• Holiday pay: Most workers are entitled to 5.6 weeks of paid holiday per year. This is usually included in your hourly rate (rolled-up holiday pay is being phased out for most). Your annual salary should reflect this.
• Salary sacrifice: If you sacrifice salary for a pension, cycle-to-work scheme, or childcare vouchers, your take-home pay will be lower than the gross figure.
• London weighting: As mentioned, this is an extra on top of your base rate.

For a detailed breakdown of UK earnings, see our salary data page, which includes median figures from the ONS.

What the Latest ONS Data Tells Us

The Office for National Statistics published the Annual Survey of Hours and Earnings (ASHE) for 2025 in October 2025. Key findings include:

• Median weekly earnings for full-time employees: £766.60 (up 5.3% from 2024).
• Median hourly earnings (excluding overtime) for full-time employees: £19.67.
• Median gross annual earnings for full-time employees in the same job for at least a year: £39,039.
• The proportion of low-paid jobs (earning less than two-thirds of median hourly pay) fell to 2.5%, the lowest since 1997.

These figures show that while the minimum wage has risen significantly, the median worker earns well above it. The highest concentration of hourly pay is around £12.40, reflecting both the NLW and the Real Living Wage.

Final Thoughts

If you’ve been searching for the “new minimum wage October 2025”, remember that the rates changed in April 2025 and will change again in April 2026. Myths about overtime and salary conversion can lead to misunderstandings about your true earnings. Always check your contract, use official sources like GOV.UK and ONS, and use our hourly calculator to see what your hourly rate means in annual terms.

Disclaimer: Hourly-to-salary figures assume a steady contracted week with no unpaid overtime, bonus, tips or salary sacrifice. Annual ≈ hourly × hours/week × 52. Actual pay depends on rota, holiday pay method, London weighting and overtime rules. Always check your contract and official GOV.UK guidance.