Minimum Wage Rates for 2026/27
From 1 April 2026, all UK minimum wage rates are increasing. Whether you are a full-time employee, a part-time worker, or a young person in your first job, understanding the rates that apply to you — and what they mean for your take-home pay — is essential. This guide covers every rate, explains the difference between the National Living Wage and the National Minimum Wage, sets out your legal rights, and shows you what you will actually take home after deductions.
The 2026/27 Hourly Rates
The UK government sets minimum wage rates each April following recommendations from the Low Pay Commission. The confirmed rates from April 2026 are:
- National Living Wage (age 21 and over): £12.50 per hour
- National Minimum Wage (age 18 to 20): £10.36 per hour
- National Minimum Wage (under 18): £7.84 per hour
- Apprentice rate: £7.84 per hour
The apprentice rate applies to apprentices aged under 19, or apprentices aged 19 and over who are in the first year of their apprenticeship. After the first year (or from age 19 if they started under 19), apprentices are entitled to the full age-appropriate minimum wage rate. You can check the official rates on GOV.UK.
National Living Wage vs Real Living Wage
There is an important distinction that causes frequent confusion:
- The National Living Wage (NLW) is the legal minimum for workers aged 21 and over. It is set by the government and employers are legally required to pay it.
- The Real Living Wage is a voluntary rate calculated by the Living Wage Foundation based on what people actually need to live on. For 2026, the Real Living Wage is £13.45 per hour outside London and £14.80 per hour in London.
Over 14,000 employers have voluntarily signed up to pay the Real Living Wage, but it is not a legal requirement. If your employer only pays the NLW of £12.71, they are meeting their legal obligations even though the Real Living Wage is higher.
What Counts Towards Your Minimum Wage
Not everything your employer pays you counts towards the minimum wage calculation. The following do count:
- Basic pay (hourly, weekly, or monthly)
- Performance-related pay and incentive payments
- Piece rates (for output work)
The following do not count:
- Tips, gratuities, and service charges
- Overtime premium (only the basic rate element counts)
- Shift premiums and unsocial hours payments
- Expenses and mileage allowances
- Benefits in kind (such as a company car or private medical insurance)
- Employer pension contributions
This means that if your basic hourly rate is below the minimum wage but your employer argues that tips make up the difference, that is not legal. Tips cannot be used to top up pay to the minimum wage level.
Your Rights If You Are Being Underpaid
Every worker in the UK is legally entitled to be paid at least the applicable minimum wage rate. If you believe you are being underpaid, here is what you can do:
- Check your payslip: Divide your total pay (excluding items that do not count) by the hours you worked. If the result is below the minimum wage, you are being underpaid.
- Raise it with your employer: It may be a genuine mistake. Payroll errors, incorrect age bands, or miscounted hours can all lead to underpayment.
- Contact Acas: The Advisory, Conciliation and Arbitration Service can provide free, confidential advice on 0300 123 1100.
- Report to HMRC: You can make a confidential complaint to HMRC's National Minimum Wage team online or by calling 0800 731 0469. HMRC can investigate your employer and enforce back-pay, plus penalties of up to 200% of the underpayment.
You are protected by law from being dismissed or treated unfairly for raising a minimum wage complaint. This protection applies regardless of how long you have worked for your employer.
Take-Home Pay at Minimum Wage
Knowing your hourly rate is one thing — knowing what actually ends up in your bank account is another. Here is what a worker on the National Living Wage of £12.50 per hour takes home at different weekly hours, after income tax and National Insurance for 2026/27:
Full-Time (37.5 hours per week)
- Gross annual salary: £24,375
- Income tax: approximately £2,361
- National Insurance: approximately £944
- Annual take-home pay: approximately £21,070
- Monthly take-home: approximately £1,756
Part-Time (20 hours per week)
- Gross annual salary: £13,000
- Income tax: approximately £86
- National Insurance: approximately £34
- Annual take-home pay: approximately £12,880
- Monthly take-home: approximately £1,073
Part-Time (16 hours per week)
- Gross annual salary: £10,400
- Below the Personal Allowance and Primary Threshold
- Annual take-home pay: £10,400 (no deductions)
- Monthly take-home: approximately £867
These figures assume a standard tax code of 1257L, no student loan, and no workplace pension deductions. Your actual take-home pay may differ.
Benefits You May Be Entitled To
If you work on the minimum wage, you may qualify for additional support that can significantly boost your household income:
- Universal Credit: Available to workers on low incomes. Use our benefits calculator to check your eligibility.
- Council Tax Reduction: Many councils reduce or eliminate council tax bills for low-income households.
- Free prescriptions: If you receive certain benefits or have a low income, you may qualify for free NHS prescriptions via an HC2 certificate.
- Tax-Free Childcare: If you have children and meet the income criteria, you could receive up to £2,000 per child per year towards registered childcare costs.
Younger Workers: NMW Rates by Age
If you are under 21, the rates are lower but still legally enforceable:
- Age 18 to 20: £10.36/hour — at 37.5 hours per week, that is a gross annual salary of £20,202 and an approximate annual take-home of £18,250.
- Under 18: £7.84/hour — at 37.5 hours per week, that is a gross annual salary of £15,288 and an approximate annual take-home of £14,623 (minimal tax, no NI below the threshold).
Your rate should automatically increase when you reach the next age band. If your employer does not adjust your pay, raise it with them immediately — failing to pay the correct age-appropriate rate is a legal breach.
Calculate Your Exact Take-Home Pay
The figures above are estimates based on standard assumptions. Your actual take-home pay depends on your tax code, pension contributions, student loan repayments, and any other deductions. Our free minimum wage calculator lets you enter your exact hourly rate, weekly hours, and personal circumstances to see precisely what you will take home in 2026/27 — weekly, monthly, and annually.