London Minimum Wage 2026: Key Rates and How They Affect Your Pay

If you're looking up the London minimum wage 2026, you'll find that the statutory minimum hourly rate is set nationally. From April 2026, the National Living Wage (NLW) for workers aged 21 and over rises to £12.71 per hour, up from £12.21 in 2025. For younger workers, the National Minimum Wage (NMW) will be £10.85 per hour for 18–20 year olds and £8.00 per hour for under-18s and apprentices (GOV.UK National Living Wage and National Minimum Wage rates).

Converting Hourly Rates to Annual Salary

To see what these rates mean for your yearly earnings, use the standard conversion: multiply the hourly rate by your contracted hours per week, then by 52 weeks. Most full-time roles are based on 37.5 or 40 hours per week. At 37.5 hours, the NLW of £12.71 gives an annual salary of £24,784.50. At 40 hours, it becomes £26,436.80. Our hourly calculator can do this for any rate and hours.

For example, a 37.5-hour week at £12.71:

• Weekly: £476.63
• Monthly: £2,065.38
• Annual: £24,784.50

After income tax and National Insurance (using the 2026/27 allowances), the take-home pay is roughly £21,364 per year, or about £1,780 per month.

London Earnings in Context

While the statutory minimum is the same across the UK, London has a higher median salary. According to the ONS Annual Survey of Hours and Earnings (ASHE) for April 2025, the median gross annual earnings for full-time employees in London were £47,455, compared to the UK median of £39,039. That's about 22% above the national figure. However, the cost of living in London – especially housing and transport – is also higher, so the real spending power of that salary may not stretch as far as it would elsewhere.

London Weighting and Sector-Specific Pay

Many employers in London, particularly in the public sector, add a London weighting or High Cost Area Supplement (HCAS) to basic pay. For example, the NHS pay scales for 2026/27 include HCAS rates that boost hourly pay. Band 1 (closed to new entrants) starts at £25,272 annual (£12.92/hr), while Band 6 starts at £20.44/hr inclusive of HCAS (NHS Employers). These rates are above the statutory minimum and reflect the higher costs of working in London.

If you work in retail, hospitality, or other sectors, your employer may pay above the NLW to attract staff in a competitive London market. Some employers voluntarily adopt the London Living Wage, which is higher than the statutory minimum. Always check your contract for any London weighting or location allowances.

Overtime and Additional Pay

When converting an hourly rate to salary, remember that overtime, bonuses, and tips are not included in the basic conversion. The NLW and NMW apply to basic hours; overtime may be paid at a higher rate, but the statutory minimum still applies to all hours worked. If you regularly work overtime, your actual annual earnings will be higher than the basic calculation.

Using Our Salary Resources

For more detailed comparisons and data, visit our salary data page, which includes UK benchmarks and regional breakdowns. You can also explore our blog for articles on salary negotiation, tax calculations, and cost of living adjustments.

Summary

The London minimum wage 2026 is the same as the UK National Living Wage: £12.71 per hour for those aged 21 and over. To convert this to an annual salary, multiply by your weekly hours and 52 weeks. While London has a higher median salary, the statutory floor is uniform. Always check your contract for any London weighting or additional allowances, and use our tools to compare your pay against national and regional averages.