UK Minimum Wage 2026: Hourly Rates, Annual Salary and Take-Home Pay

Minimum wage rates from April 2026

The National Living Wage is the legal minimum for those 21 and over; the National Minimum Wage covers younger workers and apprentices.

Minimum wage annual salary

To convert an hourly rate into a yearly salary, multiply by weekly hours and then by 52. Paid holiday is included because statutory holiday is paid at your normal rate.

Take-home pay on the National Living Wage

A 37.5-hour worker aged 21 or over earns £24,784.50. Income tax is (£24,784.50 minus £12,570) x 20% = £2,442.90 and NI is £977.16, leaving £21,364.44 a year or about £1,780 a month. If you are auto-enrolled, the minimum 5% employee pension contribution on qualifying earnings (pay above £6,240) is about £927 a year, partly covered by tax relief.

For comparison, the 2025/26 rate of £12.21 for 37.5 hours gave £23,809.50 gross, so the April 2026 rise is worth £975 a year before tax.

Apprentices and who is entitled

• Apprentices get the apprentice rate if under 19, or 19 or over and in the first year of their apprenticeship. Otherwise they get the rate for their age.
• Almost all workers are entitled, including part-time, agency, casual and zero-hours workers. The genuinely self-employed, company directors and some volunteers are not.
• Employers cannot use salary sacrifice to push pay below the minimum wage.
• Underpayment can be reported to HMRC through Acas; employers must repay arrears and can be fined and publicly named.

Scotland and the Real Living Wage

Scotland has the same legal minimum wage rates as the rest of the UK. Employment law is reserved to Westminster. Scottish income tax is different, though: a 37.5-hour worker on £12.71 pays £2,403.23 Scottish income tax, about £40 less than in England.

The Real Living Wage is a separate, voluntary rate calculated by the Living Wage Foundation based on living costs. Rates announced on 15 October 2025 are £13.45 an hour across the UK and £14.80 in London. Accredited employers commit to paying it to all staff and contractors. The Scottish Government encourages it through its Fair Work First conditions on public funding. The 2026/27 Real Living Wage is due to be announced on 15 October 2026.

National Living Wage per week and per month

Gross pay at £12.71 an hour (21 and over), before tax, NI and pension.

How the rates are set

The Low Pay Commission, an independent body of employer, worker and expert members, recommends new rates each autumn and the government announces them for the following April. The government's remit asks the LPC to keep the National Living Wage at least two-thirds of median hourly earnings and to narrow the gap between the 18 to 20 rate and the adult rate, with the long-term aim of a single adult rate. That explains why the 18 to 20 rate rose faster (8.5%) than the adult rate in April 2026. Recommendations for April 2027 are expected around the Autumn Budget 2026.

What counts towards minimum wage pay, and what does not

Minimum wage is checked on pay after certain deductions and before others. Tax and NI do not reduce it, but some employer deductions do.

Pay reference periods and averaging

Minimum wage is checked over each pay reference period, which cannot be longer than 31 days, not over a year. A very busy month cannot balance out a quiet one.

Salaried workers on annual hours are checked differently. Their salary is spread over the hours in their contract, so unpaid overtime can push the hourly rate below the legal minimum. A full-time salary of £24,785 for 37.5 hours a week is exactly £12.71 an hour. Working 40 hours a week for the same pay gives £11.92, which is below the National Living Wage.

Employers must keep minimum wage records for at least 6 years and must be able to show pay, hours and deductions for each pay reference period.

How to check you are being paid correctly

• Divide gross pay for the period (before tax, after taking out tips and premiums) by the hours actually worked, including training and required waiting time.
• Subtract any deductions for things the job requires, such as uniform or tools, and divide again.
• Compare the result with the rate for your age on the first day of the pay period. Rates change on 1 April, and birthdays count from the start of the next pay period.
• If you are underpaid, raise it with your employer first, then contact Acas or complain to HMRC. Arrears are worked out at today's rates, so a delay does not cost you.

Minimum wage and take-home on part-time hours

Part-time minimum wage workers often pay no tax at all, because the £12,570 allowance covers about 19 hours a week at £12.71. Auto-enrolment into a workplace pension starts once you earn over £10,000 a year from one employer, about 16 hours a week. Below that, you can still ask to join.