How Much Is Minimum Wage 2026? UK Rates Explained

If you're asking how much is minimum wage 2026, the answer depends on your age and employment status. From 1 April 2026, the UK government has increased the National Living Wage (NLW) and National Minimum Wage (NMW) rates following recommendations from the Low Pay Commission. Here’s what you need to know.

National Living Wage (21 and over)

The NLW for workers aged 21 and above rises to £12.71 per hour – an increase of 50p (4.1%) from the previous rate of £12.21. For a full-time employee working 37.5 hours per week, this works out to roughly £24,785 per year (before tax and National Insurance). The government expects this rate to stay ahead of the cost of living up to March 2027, providing a real-terms increase for minimum wage workers.

National Minimum Wage (18-20)

Workers aged 18 to 20 will see a larger percentage increase: the rate goes up by 8.5% to £10.85 per hour. That’s an annual salary of about £21,158 for a 37.5-hour week.

16-17 Year Old Rate and Apprentice Rate

Both the rate for 16-17 year olds and the apprentice rate increase to £8.00 per hour (up 6% from £7.55). For a 37.5-hour week, that’s approximately £15,600 per year. Note that apprentices must be paid this rate only if they are under 19 or in their first year of apprenticeship; after that, they qualify for the rate appropriate for their age.

Accommodation Offset

If your employer provides living accommodation, they can offset up to £11.10 per day against your pay (up from £10.66). This is the maximum daily amount they can count towards meeting the minimum wage.

Hourly to Annual Salary Conversion

To convert an hourly wage to an annual salary, use this simple formula:

Annual salary ≈ hourly rate × weekly hours × 52 weeks

For example:

• £12.71 × 37.5 hrs × 52 = £24,784.50
• £10.85 × 37.5 hrs × 52 = £21,157.50
• £8.00 × 37.5 hrs × 52 = £15,600.00

This calculation assumes you work the same number of hours every week with no unpaid overtime, bonuses, tips, or salary sacrifice. In reality, your take-home pay will be lower after tax and National Insurance deductions. The Hourly to Salary tool on this site can help you run your own numbers.

For context, the UK median full-time gross annual pay (from ONS ASHE 2025 data) is around £39,039, which is roughly £20.02 per hour at 37.5 hours. The National Living Wage now sits at about two-thirds of median hourly earnings, reflecting the government’s long-term ambition to increase the ‘bite’ of the minimum wage.

Common Myths About Hourly Pay and Overtime

Myth 1: Overtime must be paid at time-and-a-half

UK law does not require employers to pay a premium rate for overtime. The only legal requirement is that every hour worked – including overtime – is paid at least the National Minimum Wage or National Living Wage for your age group. Some employers offer higher rates (e.g., 1.5× or double time) as a contractual benefit, but it is not a statutory right. Always check your employment contract.

Myth 2: London weighting is part of the minimum wage

London weighting is an additional payment some employers offer to help with higher living costs in the capital. It is not part of the statutory minimum wage. The NLW and NMW rates apply nationwide. If you work in London, you may receive a higher hourly rate, but the legal minimum is still £12.71 (21+).

Myth 3: Annual salary is simply hourly rate × 40 hours × 52 weeks

Many people assume a 40-hour week, but full-time hours vary by industry and contract. The standard for many salaried roles is 35-37.5 hours per week. Always use your actual contracted hours. Also, annual salary calculations often ignore unpaid breaks, shift premiums, and irregular rotas. For a more accurate picture, use the salary data page to compare typical earnings by occupation.

Myth 4: You can’t earn less than the minimum wage if you’re on a salary

Even if you are salaried, your employer must ensure that your total pay divided by the hours you actually work (including overtime) does not fall below the minimum wage for your age group. If you regularly work extra hours without additional pay, your effective hourly rate could drop below the legal minimum. This is known as ‘salaried hours’ work – your contract should specify the number of basic hours your salary covers.

What About Tax and Universal Credit?

The government has also increased the Universal Credit standard allowance by 6.2% from April 2026 – higher than the NLW rise. This means that minimum wage workers who receive Universal Credit will see a bigger boost to their take-home income than the headline 4.1% increase. However, workers who pay tax but do not receive Universal Credit will see a smaller net increase because income tax thresholds remain frozen at £12,570. As a result, a larger portion of their earnings will be taxed.

Final Thoughts

Knowing how much is minimum wage 2026 is the first step to understanding your pay. Whether you’re negotiating a new job, checking your current wage, or planning your budget, always verify your exact hourly rate and contracted hours. For more guidance, visit the about page to learn how we calculate salary conversions.

Remember: the figures above are gross pay. Your actual take-home pay will be lower after deductions. Use the hourly calculator to estimate your net income.