The National Minimum Wage and National Living Wage rates increase every April. Here are the new rates from April 2026 and what they mean for your pay.
New Rates from April 2026
| Age group | Rate from April 2026 | Rate in 2025/26 | Increase |
|---|---|---|---|
| 21 and over (National Living Wage) | £12.50/hour | £12.21/hour | +29p (+2.4%) |
| 18–20 | £10.40/hour | £10.00/hour | +40p (+4.0%) |
| Under 18 | £7.75/hour | £7.55/hour | +20p (+2.6%) |
| Apprentice | £7.75/hour | £7.55/hour | +20p (+2.6%) |
The apprentice rate applies to apprentices under 19, or apprentices aged 19 and over in the first year of their apprenticeship.
What This Means in Annual Earnings
| Age group | Hourly rate | Weekly (37.5 hours) | Monthly | Annual (full-time) |
|---|---|---|---|---|
| 21+ (NLW) | £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 |
National Living Wage vs National Minimum Wage vs Real Living Wage
| Wage type | Set by | Rate (from April 2026) | Who it applies to | Legal status |
|---|---|---|---|---|
| National Living Wage (NLW) | Government (Low Pay Commission advice) | £12.50/hour | Workers 21+ | Legally required |
| National Minimum Wage (NMW) | Government | £7.75–£10.40 (by age) | Workers 16–20, apprentices | Legally required |
| Real Living Wage | Living Wage Foundation | ~£12.60 (UK) / ~£13.85 (London) | Voluntary — accredited employers | Not legally required |
The Real Living Wage is higher than the NLW and is calculated based on the actual cost of living. Around 14,000+ UK employers are accredited Real Living Wage employers.
Impact on Your Take-Home Pay (21+ Full-Time)
| Deduction | 2025/26 (£12.21/hr) | 2026/27 (£12.50/hr) |
|---|---|---|
| Gross annual | £23,810 | £24,375 |
| Income tax | ~£2,248 | ~£2,361 |
| National Insurance | ~£1,349 | ~£1,417 |
| Net annual (approx.) | ~£20,213 | ~£20,597 |
| Net monthly (approx.) | ~£1,684 | ~£1,716 |
| Monthly increase | ~£32 |
Based on standard tax code 1257L, 37.5-hour week, and 2026/27 NI thresholds.
Who Must Be Paid Minimum Wage
| Worker type | Entitled to NMW/NLW? |
|---|---|
| Full-time employees | Yes |
| Part-time employees | Yes |
| Agency workers | Yes |
| Zero-hours contract workers | Yes |
| Casual workers | Yes |
| Piece workers (paid per item) | Yes — must average at least NMW per hour |
| Interns (doing work) | Yes — if doing work normally done by an employee |
| Work experience (under 1 year, part of education) | Exempt |
| Volunteers (genuinely voluntary) | Exempt |
| Self-employed (genuinely) | Exempt |
| Company directors | Exempt (if not also a worker) |
| Members of the armed forces | Exempt |
| Family members in family business | May be exempt |
| Live-in au pairs | Exempt |
What Counts as Working Time for NMW
| Counts as working time | Does not count |
|---|---|
| Hours at workplace doing your job | Lunch breaks (if not working) |
| Waiting to be given work (on premises) | Travel between home and work |
| Training (required by employer) | Industrial action |
| Travel between work locations during shift | Rest breaks where you are free to leave |
| On-call at workplace | On-call at home (unless called in) |
| Time spent putting on required uniform/PPE |
What to Do If You’re Not Being Paid Minimum Wage
| Step | Action |
|---|---|
| 1 | Check your payslip — calculate hourly rate from gross pay ÷ hours worked |
| 2 | Raise with your employer informally first |
| 3 | If unresolved, raise a formal grievance |
| 4 | Report to HMRC (pay and work rights helpline: 0300 123 1100) |
| 5 | Seek advice from ACAS (0300 123 1100) or Citizens Advice |
HMRC can investigate employers and issue penalty notices for underpayment. Employers can be fined up to 200% of the arrears owed (minimum £100, maximum £20,000 per worker). They are also publicly named.
Accommodation Offset
If your employer provides accommodation as part of your job, they can offset a set amount against the minimum wage.
| Tax year | Daily offset limit | Weekly offset limit |
|---|---|---|
| 2026/27 | £10.66 per day | £74.62 per week |
The accommodation offset is the only deduction or benefit-in-kind that can count towards meeting the minimum wage. Other deductions (uniform costs, tools, etc.) that reduce pay below NMW are not permitted.
Effect on Benefits
A minimum wage increase affects income-related benefits:
| Benefit | Impact |
|---|---|
| Universal Credit | Higher earnings → lower UC payment (55p taper) |
| Working Tax Credit | Higher earnings may reduce entitlement |
| Housing Benefit | Higher earnings may reduce entitlement |
| Council Tax Reduction | Higher earnings may reduce entitlement |
For every extra £1 earned, Universal Credit reduces by 55p — so you keep 45p of each extra pound (before tax and NI).
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