is minimum wage going up
Is Minimum Wage Going Up? Common Myths About Hourly Pay and Overtime in the UK
The National Living Wage for workers aged 21 and over will rise to £12.71 per hour from April 2026, up from £12.21 in 2025.
Is Minimum Wage Going Up?
Yes, the National Living Wage (NLW) and National Minimum Wage (NMW) rates are increasing from 1 April 2026. For workers aged 21 and over, the NLW rises to £12.71 per hour, a 4.1% increase on the 2025 rate of £12.21. The 18-20 rate jumps to £10.85 (up 8.5%), while the 16-17 and apprentice rates both go to £8.00. These changes follow recommendations from the Low Pay Commission, which aims to keep the NLW at two-thirds of median hourly earnings. The ONS Annual Survey of Hours and Earnings (ASHE) for 2025 shows median full-time hourly pay (excluding overtime) was £19.67, so the new NLW remains well below that but still represents a real-terms rise for lower-paid workers.
What the 2026 Increase Means for Your Pay
If you work 37.5 hours per week on the NLW, your annual salary would be approximately £24,784.50 (before tax and National Insurance). That is about £975 more than the 2025 equivalent of £23,809.50. However, remember that annual figures assume you are paid for every week of the year and have no unpaid leave. The Income Tax Personal Allowance remains at £12,570, so a full-time minimum wage earner will pay some income tax but no National Insurance on the first £12,570 of earnings.
For part-time workers, the hourly rate is the key figure. Whether you work 10 hours or 40 hours, your employer must pay at least the relevant minimum wage for each hour worked. The GOV.UK guidance is clear: the NLW applies to all workers aged 21 and over, regardless of hours.
Common Myths About Hourly Pay and Overtime
Many UK employees and job seekers misunderstand how hourly rates translate into annual salary, and what rules apply to overtime. Here we debunk three persistent myths using official data.
Myth 1: Overtime Is Always Paid at a Higher Rate
There is no legal right to ‘time-and-a-half’ or double time for overtime in the UK. The only legal requirement is that your average hourly pay across the entire pay period (including overtime hours) does not fall below the National Minimum Wage or National Living Wage. If your contract says you are paid a flat hourly rate for all hours, that is perfectly legal. Some employers offer enhanced overtime rates, but it is not mandatory. Always check your employment contract. For example, NHS pay scales include overtime provisions (often time-and-a-half or double time for certain bands), but this is specific to the NHS Terms and Conditions, not a general right.
Myth 2: Annual Salary Is Just Hourly Rate × 40 Hours × 52 Weeks
Many people assume a 40-hour week is standard, but the ONS defines full-time as more than 30 paid hours per week (or 25 for teachers). The median full-time employee works around 37.5 hours, but this varies by sector. Using 40 hours can overestimate your annual salary. A more accurate conversion uses your contracted hours. For example, if you earn £15 per hour and work 35 hours per week, your annual salary is £15 × 35 × 52 = £27,300. But this assumes no unpaid overtime, no salary sacrifice, and that you are paid for all 52 weeks. Use our salary articles for deeper guidance on calculating take-home pay.
Myth 3: Minimum Wage Applies Equally to All Workers
The NLW and NMW rates depend on age and apprenticeship status. From April 2026:
- 21 and over: £12.71
- 18-20: £10.85
- 16-17: £8.00
- Apprentices (any age, first year): £8.00
If you are 20, your employer can legally pay you £10.85 even if you do the same job as a 21-year-old on £12.71. Also, the ‘accommodation offset’ (the maximum an employer can charge for living accommodation) rises to £11.10 per day. These nuances are often overlooked. The Low Pay Commission’s evidence shows that the 18-20 rate increase of 8.5% is designed to narrow the gap with the NLW, but the age-based structure remains.
How to Use Hourly Rates in Salary Negotiations
When comparing job offers, always look at the hourly rate first, especially if the role involves overtime or shift work. London weighting can add a significant premium. For example, NHS pay scales include Higher Cost Area Supplements (HCAS) for inner and outer London, which can add 20% of basic salary (subject to a minimum and maximum). A job advertised at £12.71 per hour in central London may actually pay more once HCAS is included.
For a quick conversion, remember: annual ≈ hourly × hours per week × 52. But this is a rough guide. Your actual take-home pay depends on tax, pension contributions, student loan repayments, and any salary sacrifice schemes. Our hourly calculator can help you estimate net pay, but always consult official HMRC guidance for precise figures.
Final Thoughts
The minimum wage is going up in 2026, providing a real-terms increase for the lowest-paid workers. However, myths about overtime and salary conversion can lead to confusion. Always check your contract, understand your rights, and use reliable sources like ONS and GOV.UK for benchmarks. For more data on UK earnings, visit our salary data page.
FAQs
Is the minimum wage going up in 2026?
Yes. From 1 April 2026, the National Living Wage for workers aged 21 and over rises to £12.71 per hour, an increase of 50p (4.1%). The 18-20 rate goes up to £10.85, and the 16-17 and apprentice rates to £8.00. These rates were confirmed by GOV.UK following Low Pay Commission recommendations.
Does my employer have to pay me more for overtime?
Not necessarily. There is no legal requirement to pay a premium rate for overtime, unless your contract says so. The legal minimum is that your average hourly pay across the pay period (including overtime) must not fall below the National Minimum Wage or National Living Wage. Some sectors, like retail or hospitality, have voluntary agreements, but it is not a universal right.
How do I convert my hourly wage to an annual salary?
A common rule of thumb is to multiply your hourly rate by your contracted weekly hours and then by 52 weeks. For example, at 37.5 hours per week, £12.71 per hour gives about £24,784.50 per year. However, this assumes no unpaid overtime, a consistent rota, and that you are paid for all weeks of the year. Use our [hourly calculator](/calculator) for a quick estimate, but always check your contract.
Hourly to Salary
Pull → year
£477/wk ·£2,065/mo
£24,785
Formula: hourly × hours/week × 52 · tip shows annual gross
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