Is the minimum wage going up in 2026?

Yes, the minimum wage is going up in 2026. From 1 April 2026, all rates of the National Minimum Wage (NMW), including the National Living Wage (NLW), will increase. This follows recommendations from the Low Pay Commission (LPC) published in October 2025. The new rates are designed to keep the NLW at two-thirds of median hourly earnings and to give workers a real-terms pay rise above expected inflation.

New National Living Wage and National Minimum Wage rates from April 2026

Age group / category	Hourly rate from April 2026	Increase
National Living Wage (21 and over)	£12.71	+50p (4.1%)
18-20 year old rate	£10.85	+85p (8.5%)
16-17 year old rate	£8.00	+45p (6.0%)
Apprentice rate	£8.00	+45p (6.0%)

These rates are confirmed by GOV.UK and the LPC. The NLW increase of 4.1% is expected to outpace the cost of living, meaning a real-terms pay rise for minimum wage workers.

What does this mean for your annual salary?

If you are paid by the hour, you can estimate your annual salary by multiplying your hourly rate by your contracted weekly hours and then by 52 weeks. For a typical full-time worker on 37.5 hours per week, the new NLW of £12.71 gives an annual salary of approximately £24,785 before tax and National Insurance.

For comparison, the UK median full-time gross annual pay is around £39,039, which equates to about £20.02 per hour at 37.5 hours per week. The NLW increase helps close the gap but remains below the median.

Important notes on conversion

• The formula hourly rate × hours per week × 52 gives a gross annual figure. Actual take-home pay will be lower after deductions for tax, National Insurance, pension contributions, and student loan repayments.
• The calculation assumes a steady contracted week with no unpaid overtime, bonuses, tips, or salary sacrifice. If you work overtime, your actual earnings may be higher, but overtime rates may differ.
• Holiday pay is already included in the hourly rate for most workers, but check your contract.

How does the minimum wage compare to other pay benchmarks?

The NHS pay scales for 2026/27 provide a useful benchmark for hourly and annual pay across different roles. Agenda for Change bands cover most NHS staff except doctors and dentists. Here are some key entry-level rates:

• Band 1 (closed to new entrants): £12.92 per hour, annual £25,272
• Band 2 (e.g. healthcare assistant): entry rate not shown but typically around £12.92
• Band 3 (e.g. senior healthcare assistant): £13.17 per hour entry, annual £25,272 (approx)
• Band 4 (e.g. assistant practitioner): £14.52 per hour entry
• Band 5 (newly qualified nurse): £16.40 per hour entry, rising to £19.97 at top step

NHS staff in London and the South East also receive High Cost Area Supplements (HCAS). For Inner London, HCAS adds 20% of basic salary (minimum £5,794, maximum £8,746 per year). This can significantly increase take-home pay for those working in the capital.

What about future increases?

The Low Pay Commission has indicated that to maintain the NLW at two-thirds of median earnings, the rate for 2027 may need to be in the range of £13.02 to £13.34, with a central estimate of £13.18. This suggests further above-inflation increases are likely.

How to use this information

Whether you are comparing a salaried job offer with an hourly position, or negotiating a pay rise, understanding the relationship between hourly rates and annual salary is essential. Use our Hourly to Salary calculator to convert your rate quickly, or browse our salary articles for more guidance on UK pay scales and benchmarks.

Remember that the minimum wage is a legal floor – many jobs pay above it, especially in sectors like healthcare, education, and skilled trades. Always check the official GOV.UK guidance for the latest rates and your employment rights.

Key takeaways

• The minimum wage is going up in 2026: NLW rises to £12.71 per hour from April.
• Annual salary for a full-time worker on the NLW is about £24,785 (37.5 hrs/week).
• NHS pay scales show higher rates for skilled roles, with London weighting adding up to 20%.
• Use the hourly-to-annual conversion rule of thumb, but consider tax, benefits, and overtime.

For more detailed salary data, visit our salary data page, or use the hourly calculator to see your own figures.