All National Minimum Wage & Living Wage Rates: April 2026
From 1 April 2026, the following rates are legally in force for all UK employers. These were confirmed by Chancellor Rachel Reeves in the Autumn 2025 Budget, accepting the Low Pay Commission's recommendations in full.
| Category | Rate from Apr 2025 | Rate from Apr 2026 | Increase | % Rise |
|---|---|---|---|---|
| Age 21+ (National Living Wage) | £12.21/hr | £12.71/hr | +£0.50 | +4.1% |
| Age 18–20 | £10.00/hr | £10.85/hr | +£0.85 | +8.5% |
| Age 16–17 | £7.55/hr | £8.00/hr | +£0.45 | +6.0% |
| Apprentice rate | £7.55/hr | £8.00/hr | +£0.45 | +6.0% |
| Accommodation offset (daily) | £10.66/day | £11.10/day | +£0.44 | +4.1% |
Apprentice rate note
The £8.00 apprentice rate applies only to apprentices under 19, or those aged 19+ who are in the first year of their apprenticeship. Once you're 19+ and past your first year, you're entitled to the NMW/NLW for your age group — so a 22-year-old second-year apprentice must receive at least £12.71/hr.
What Is the Minimum Wage as an Annual Salary? (2026/27)
Here's the NLW and NMW converted to annual salary at common working hours — assuming no overtime and 52 weeks per year:
| Rate | 20 hrs/week | 25 hrs/week | 35 hrs/week | 37.5 hrs/week | 40 hrs/week |
|---|---|---|---|---|---|
| £12.71 (NLW, 21+) | £13,218 | £16,523 | £23,132 | £24,785 | £26,437 |
| £10.85 (NMW, 18–20) | £11,284 | £14,105 | £19,747 | £21,158 | £22,568 |
| £8.00 (NMW, 16–17) | £8,320 | £10,400 | £14,560 | £15,600 | £16,640 |
Key threshold alert
A full-time worker (37.5 hrs) on the NLW earns £24,785/year — above the income tax Personal Allowance (£12,570) but below the NI Primary Threshold. They will pay income tax but their NI bill depends on the exact hours worked. A full-time NLW worker on 40 hrs earns £26,437/year.
Exact Take-Home Pay After Tax and NI (2026/27)
Here's the net take-home pay for a full-time NLW worker at 37.5 hours/week (£24,785/year) and 40 hours/week (£26,437/year), assuming standard tax code 1257L and no student loan or pension deductions:
37.5 hrs/week — £24,785/year
40 hrs/week — £26,437/year
For personalised calculations with student loans, pension contributions, or different hours, use the take-home pay calculator — enter your annual salary from the table above.
The Problem: Minimum Wage Workers Are Paying More Tax
With income tax thresholds frozen at £12,570 until at least April 2031, every minimum wage increase automatically pulls more of a worker's pay into the taxable band — without any change to tax rates. This is called fiscal drag.
| Tax Year | NLW (37.5 hrs) | Personal Allowance | Taxable Amount | Tax Bill |
|---|---|---|---|---|
| 2022/23 | £18,705 | £12,570 | £6,135 | £1,227 |
| 2024/25 | £23,795 | £12,570 | £11,225 | £2,245 |
| 2026/27 | £24,785 | £12,570 | £12,215 | £2,443 (+£1,216 vs 2022) |
A full-time NLW worker in 2026/27 pays £1,216 more income tax per year than an equivalent worker did in 2022/23, purely because wages rose while the tax-free threshold didn't. The government collects an additional £1,216 per worker without ever changing the 20% rate.
NLW vs Real Living Wage vs London Living Wage
There are three distinct "living wages" in the UK — they are often confused:
| Wage | 2026 Rate | Set by | Is it law? |
|---|---|---|---|
| National Living Wage | £12.71/hr | Government / LPC | Yes — legally required |
| Real Living Wage (UK) | £13.45/hr | Living Wage Foundation | No — voluntary |
| London Living Wage | £14.80/hr | Living Wage Foundation | No — voluntary |
Over 16,000 UK employers have voluntarily committed to paying the Real Living Wage, including many large corporations and public sector bodies. The difference between £12.71 and £13.45 for a full-time worker is £1,539 gross per year — or about £1,200 net after tax and NI.
Enforcement: What Happens if Employers Don't Comply?
From April 2026, the new Fair Work Agency (FWA) takes over enforcement of NMW/NLW compliance, consolidating responsibilities previously spread across multiple bodies. Penalties for underpayment are severe:
- Employers must repay all arrears (calculated at current NMW rates, not the rate at the time)
- Financial penalty of up to 200% of arrears, capped at £20,000 per worker
- Public "naming and shaming" by HMRC — reputational damage for businesses
- Criminal prosecution in the most serious cases
In 2024/25, HMRC opened 5,200 new underpayment investigations and recovered arrears for over 1,200 workers. Workers who believe they are being underpaid can report confidentially to ACAS or directly to the FWA from April 2026.
Where Is the Minimum Wage Heading?
The Low Pay Commission has signalled that the government's long-term intention is to:
- Lower the NLW age threshold from 21 to 20 in 2027, and potentially to 18 by 2028 or 2029
- Maintain the NLW at or above two-thirds of median hourly earnings
- Eventually create a single adult wage rate applying to all workers regardless of age
For context: a full-time NLW worker in 2026/27 earns approximately £24,785 gross — edging toward the current UK median salary of around £35,000–£37,000. The NLW is now far more significant in the wage distribution than when it was introduced at £7.20 in 2016.
Calculate your take-home on the new wage
Use the UK Take-Home Pay Calculator. Multiply your hourly rate by your weekly hours × 52 to get your annual gross, then enter it into the calculator. For example: £12.71 × 37.5 × 52 = £24,785.
Sources
Low Pay Commission Annual Report Nov 2025 · GOV.UK National Minimum Wage rates · HM Treasury Autumn Budget 2025 · HMRC enforcement statistics 2024/25 · Bishop Fleming, Capital Law, Davidson Morris (cited March 2026). For guidance only — not legal advice.