Banking

UK Minimum Wage and National Living Wage 2026 — Current Rates and Rules

Current UK minimum wage rates for 2026. National Living Wage, age bands, apprentices, and what to do if you're being underpaid.

Everyone deserves fair pay for their work. Here’s what you need to know about UK minimum wage rates, rules, and your rights.

Current Minimum Wage Rates

Rates typically change each April — check gov.uk for the most current figures

2025/26 Rates (From April 2025)

Age/Category Hourly Rate
National Living Wage (21+) Check current rate
18-20 Check current rate
Under 18 Check current rate
Apprentice Check current rate

Always check gov.uk for the current rates as they change annually.

Historical Rate Increases

Year National Living Wage (21+) 18-20 Under 18
April 2024 £11.44 £8.60 £6.40
April 2023 £10.42 £7.49 £5.28
April 2022 £9.50 £6.83 £4.81
April 2021 £8.91 £6.56 £4.62
April 2020 £8.72 £6.45 £4.55

Rates have increased significantly over recent years, generally outpacing inflation.

Who Gets Which Rate?

By Age

Your Age You Get
21+ National Living Wage (highest)
18-20 National Minimum Wage (lower rate)
Under 18 (not apprentice) National Minimum Wage (youth rate)
Apprentice (first year) Apprentice rate (lowest)

Apprentice Rate Rules

You get the apprentice rate if:

  • You’re an apprentice under 19, OR
  • You’re 19+ and in the first year of apprenticeship

After the first year (or if you’re 19+ and past year one), you get the rate for your age.

When Your Rate Changes

Situation New Rate Applies
Turn 18 From first pay day after birthday
Turn 21 From first pay day after birthday
Complete apprentice year 1 From first pay day after anniversary
Annual April increase From first pay day on/after 1 April

Types of “Living Wage”

There are three different things called “living wage” — don’t confuse them:

1. National Living Wage (Government)

Feature Details
Set by UK Government
Legal status Mandatory — employers must pay
Applies to Workers 21+
Enforced by HMRC

2. National Minimum Wage (Government)

Feature Details
Set by UK Government
Legal status Mandatory — employers must pay
Applies to Workers under 21 + apprentices
Enforced by HMRC

3. Real Living Wage (Voluntary)

Feature Details
Set by Living Wage Foundation (charity)
Legal status Voluntary — encouragement only
Rates Higher than government rates
London rate Higher again

The voluntary Real Living Wage is calculated based on what people need to live — it’s higher than the legal minimum. Employers displaying the “Living Wage Employer” logo pay this voluntarily.

Voluntary vs Mandatory Comparison

Type UK Rate London Rate Legal?
National Living Wage ~ £11-12/hr Same Yes
Real Living Wage ~ £12/hr ~ £13/hr No (voluntary)

Calculating Your Pay

Are You Getting Minimum Wage?

Step Calculation
1 Total pay in pay period (before tax)
2 Minus: tips, premium pay, benefits in kind
3 Divide by hours worked
4 Compare to minimum wage for your age

What Counts as Pay

Counts ✅ Doesn’t Count ❌
Basic hourly/weekly pay Tips from customers
Incentive pay Premium for overtime
Performance bonuses Expenses
Commission Benefits in kind
Premium for unsocial hours
Pension contributions

Common Situations

Scenario How It Works
Salaried employee Salary ÷ contracted hours
Variable hours Pay ÷ actual hours worked
Piece work Must average at least min wage
Sleep-ins Complex — depends on work required

What Counts as Working Time

Time That Must Be Paid

Activity Must Be Paid?
Regular work duties ✅ Yes
Compulsory training ✅ Yes
Travel between work sites ✅ Yes
Waiting to be given work/at workplace ✅ Yes
On-call at workplace ✅ Yes
Security searches (compulsory) ✅ Yes

Time That May Not Be Paid

Activity Must Be Paid?
Travel to/from work ❌ No
Lunch breaks ❌ No (if not working)
On-call at home ❌ No (unless called in)
Voluntary training ❌ No

Deductions and Minimum Wage

What Employers Can Deduct

Type Can Reduce Below MW?
Income tax Yes (legal requirement)
National Insurance Yes (legal requirement)
Pension contributions (auto-enrolment) Yes
Court orders Yes
Agreed in contract (e.g., loans) No — can’t take below MW
Uniform/equipment No — can’t take below MW
Till shortages No — can’t take below MW

Uniform and Equipment

If your employer requires specific uniform or equipment:

  • They can require you to buy it
  • But your pay after deduction must still be at least minimum wage
  • Many employers provide uniforms free to avoid this issue

Your Rights

Zero-Hour Contracts

Right Details
Minimum wage Must receive for all hours worked
Not required to accept hours Can say no without penalty
Exclusivity banned Can work for others
Notice of shifts Required in some cases

Part-Time Workers

Right Details
Same hourly rate As comparable full-time workers
Minimum wage protection Same as all workers
Pro-rata benefits Holiday, pension, etc.

Agency Workers

Right Details
Minimum wage Someone must pay it (agency or hirer)
After 12 weeks Equal treatment rights

If You’re Being Underpaid

Step 1: Check Your Pay

Check How
Your age on pay day Determines which rate
Hours worked Check timesheets/records
Deductions Are they legitimate?
Pay received Total before tax

Use the government’s Minimum Wage Calculator to check.

Step 2: Raise It With Employer

Approach Script
Informal first “I’ve calculated my pay and it seems below minimum wage — can we check this?”
Be factual Show your calculations
Keep records Document conversations

Step 3: Formal Complaint

If informal doesn’t work:

Action How
Written grievance Use company grievance procedure
Acas advice Free, confidential advice
HMRC complaint They investigate employers
Employment tribunal For unpaid wages

Reporting to HMRC

What Happens Details
Anonymous reporting You can report anonymously
Investigation HMRC investigates employer
Arrears paid Employer ordered to pay back wages
Penalties Employers face fines
Naming and shaming Public list of offenders

Report online at gov.uk or call the Acas helpline.

Exempt Workers

Some workers are not entitled to minimum wage:

Category Why Exempt
Self-employed Not employees (but check status)
Company directors Unless also employees
Volunteers Genuine volunteers only
Unpaid family workers Living in employer’s home
Armed forces Separate pay scales
Prisoners
Students on work placements (under 1 year) Part of education

Warning: Some employers wrongly classify people as self-employed or volunteers. If you’re told you’re not entitled but work regular hours with set duties, check your status.

Minimum Wage Annual Earnings

Full-Time (37.5 hours/week) Take-Home

At Rate Gross Annual Monthly Take-Home*
£11.44/hr £22,308 ~£1,700
£12.00/hr £23,400 ~£1,760
£13.00/hr £25,350 ~£1,870

Approximate after tax/NI, no student loan

Hours Needed for Different Incomes

Target Monthly Net Hours at NLW
£1,500 ~32 hours/week
£1,750 ~38 hours/week
£2,000 ~45 hours/week

Beyond Minimum Wage

Moving Up

Strategy How
Gain experience Time in role builds value
Get training/qualifications Increases earning potential
Ask for raises How to negotiate
Move to higher-paying sector Some sectors pay more
Look for Living Wage employers Voluntary higher pay

Sectors That Typically Pay Above Minimum

Higher Paying Lower Paying
Finance Hospitality
Tech Retail
Healthcare (qualified) Care work
Construction (skilled) Agriculture
Professional services Cleaning

Useful Resources

Resource What It Does
gov.uk minimum wage Official rates and calculator
Acas Free employment advice
Citizens Advice Rights information
Living Wage Foundation Voluntary scheme info
HMRC Report underpayment

Key Takeaways

Point Remember
Minimum wage is law Employers must pay it
Rate depends on age Check you’re on correct rate
Changes in April Check for annual increases
Tips don’t count Must be paid on top
Can’t deduct below MW For things like uniforms
You can report anonymously HMRC investigates