Every April, the UK’s minimum wage rates are updated. From 1 April 2026, the National Living Wage for workers aged 21 and over is £12.50 per hour. Here are all the current rates, what they mean in annual earnings, and how they compare to the real Living Wage.
Minimum Wage Rates from April 2026
| Age group | Hourly rate | Weekly (37.5 hrs) | Monthly | Annual |
|---|---|---|---|---|
| 21+ (National Living Wage) | £12.50 | £468.75 | £2,031 | £24,375 |
| 18–20 | £10.40 | £390.00 | £1,690 | £20,280 |
| Under 18 | £7.75 | £290.63 | £1,259 | £15,113 |
| Apprentice | £7.75 | £290.63 | £1,259 | £15,113 |
The apprentice rate applies to apprentices under 19, or those 19 and over who are in the first year of their apprenticeship. After the first year, apprentices aged 19+ move to the age-appropriate NMW rate.
Minimum Wage Rate History
| Year (from April) | 21+ (NLW) | 18–20 | Under 18 | Apprentice |
|---|---|---|---|---|
| 2026 | £12.50 | £10.40 | £7.75 | £7.75 |
| 2025 | £12.21 | £10.00 | £7.55 | £7.55 |
| 2024 | £11.44 | £8.60 | £6.40 | £6.40 |
| 2023 | £10.42 | £7.49 | £5.28 | £5.28 |
| 2022 | £9.50 | £6.83 | £4.81 | £4.81 |
| 2021 | £8.91 | £6.56 | £4.62 | £4.30 |
| 2020 | £8.72 | £6.45 | £4.55 | £4.15 |
The NLW has increased by 40% since 2020 — from £8.72 to £12.50 per hour. The age threshold was also lowered from 25+ to 23+ in 2021, then to 21+ in 2024.
Take-Home Pay on Minimum Wage 2026/27
After income tax and National Insurance, here’s what full-time minimum wage workers actually take home:
| Age group | Gross annual | Income tax | NI | Take-home pay | Monthly take-home |
|---|---|---|---|---|---|
| 21+ (NLW) | £24,375 | £2,361 | £944 | £21,070 | £1,756 |
| 18–20 | £20,280 | £1,542 | £617 | £18,121 | £1,510 |
| Under 18 | £15,113 | £509 | £204 | £14,400 | £1,200 |
Based on 37.5 hours per week, 52 weeks, with standard tax code 1257L and no student loan. Use the Take Home Pay Calculator for your exact figure.
Workers earning £24,375 on the NLW fall entirely within the basic rate tax band, with most of their income covered by the Personal Allowance of £12,570.
National Living Wage vs National Minimum Wage vs Real Living Wage
| Wage type | Set by | Rate (2026/27) | Legal requirement? |
|---|---|---|---|
| National Living Wage (NLW) | UK Government | £12.50/hr (21+) | ✅ Yes — legal minimum |
| National Minimum Wage (NMW) | UK Government | £7.75–£10.40/hr (under 21) | ✅ Yes — legal minimum |
| Real Living Wage | Living Wage Foundation | £12.60/hr (UK) | ❌ No — voluntary |
| London Living Wage | Living Wage Foundation | £13.85/hr (London) | ❌ No — voluntary |
The Real Living Wage is calculated based on the actual cost of living, including housing, food, and transport. Over 14,000 UK employers voluntarily pay at least the Real Living Wage, but it is not a legal requirement.
Who Is Entitled to the Minimum Wage
Almost all workers in the UK are entitled to at least the National Minimum Wage, including:
| Worker type | Entitled? | Notes |
|---|---|---|
| Full-time employees | ✅ Yes | Age-appropriate rate |
| Part-time employees | ✅ Yes | Same hourly rate |
| Zero-hours contract workers | ✅ Yes | For all hours worked |
| Agency workers | ✅ Yes | From day one |
| Casual workers | ✅ Yes | For all hours worked |
| Piece workers | ✅ Yes | Average hourly rate must meet NMW |
| Commission-only workers | ✅ Yes | Average hourly rate must meet NMW |
| Apprentices | ✅ Yes | Apprentice rate applies |
| Self-employed | ❌ No | Set your own rates |
| Company directors | ❌ No | Unless they have a contract of employment |
| Volunteers | ❌ No | Genuine volunteers only |
| Work experience (under 1 year) | ❌ No | Some placements exempt |
Common Situations Where Employers Underpay
HMRC regularly finds underpayment in these areas:
- Unpaid training time — if attendance is compulsory, it counts as working time
- Uniform or equipment costs — if deducted from pay, can push you below NMW
- Tips counted as wages — tips cannot count towards NMW (since 2009)
- Sleep-in shifts — complex rules, but many hours must be paid
- Travel time between jobs — travel during the working day counts
- Rounding down hours — employers must pay for all time worked
Minimum Wage and Benefits
Earning minimum wage can affect your benefit entitlements:
| Benefit | Impact of NLW income |
|---|---|
| Universal Credit | Income reduces UC via 55% taper rate. Single person on NLW may still qualify |
| Child Benefit | Not income-tested — no effect unless earning over £60,000 |
| Council Tax Reduction | May qualify for partial reduction on NLW income |
| Housing Benefit | Being phased into UC — NLW income reduces entitlement |
| Free school meals | May qualify if also receiving UC (income threshold applies) |
A single parent working full-time on the NLW (£24,375) would typically still qualify for some Universal Credit, especially if they have childcare costs.
Enforcement and Your Rights
If You’re Being Underpaid
- Check your payslips — calculate your actual hourly rate by dividing gross pay by hours worked
- Raise it with your employer — often underpayment is an administrative error
- Contact HMRC — Pay and Work Rights Helpline: 0300 123 1100
- Contact ACAS — for employment advice: 0300 123 1100
Employer Penalties
| Penalty | Amount |
|---|---|
| Financial penalty | Up to 200% of arrears owed (min £100, max £20,000 per worker) |
| Naming and shaming | HMRC publishes names of non-compliant employers |
| Back pay | Must pay all arrears to the worker |
| Criminal prosecution | In serious cases, directors can face criminal charges |
It is illegal for an employer to dismiss you, reduce your hours, or treat you unfairly for raising a minimum wage complaint.
Key Dates for 2026/27
| Date | Event |
|---|---|
| 1 April 2026 | New minimum wage rates take effect |
| Autumn 2026 | Low Pay Commission recommends April 2027 rates |
| 1 April 2027 | Next rate increase expected |