Understanding the Minimum Wage Rise 2026

How the National Living Wage and National Minimum Wage Are Changing

From April 2026, the National Living Wage (NLW) for workers aged 21 and over increases to £12.71 per hour, a 4.1% rise from the previous £12.21. This is part of the government's commitment to maintain the NLW above inflation. The rates for younger workers also increase: 18-20 year olds will receive £10.85 per hour (up 8.5%), and 16-17 year olds and apprentices will receive £8.00 per hour (up 6.0%). These rates are confirmed by GOV.UK following recommendations from the Low Pay Commission.

Converting Hourly Rates to Annual Salary: The Hours Assumption

When converting an hourly wage to an annual salary, the number of hours worked per week is crucial. A common rule of thumb used by Hourly to Salary is to multiply the hourly rate by 37.5 hours per week and then by 52 weeks. For example, the new NLW of £12.71 per hour gives an annual salary of approximately £24,785 for a full-time worker on a 37.5-hour contract. However, this is only an estimate. Actual annual earnings depend on your contracted hours, overtime, and whether you work full-time or part-time.

The Office for National Statistics (ONS) defines full-time as working more than 30 paid hours per week (or 25 for teaching professions). Part-time is 30 hours or fewer. Therefore, a part-time worker on 20 hours per week at the NLW would earn about £13,218 per year (20 hours × 52 weeks × £12.71). The ONS ASHE data shows that median weekly earnings for part-time employees were £280.00 in April 2025, which is significantly lower than the full-time median of £766.60.

Full-Time vs Part-Time: Impact of the Minimum Wage Rise 2026

The minimum wage rise 2026 benefits both full-time and part-time workers equally on an hourly basis, but the annual impact differs. A full-time worker on 37.5 hours will see their weekly pay increase by about £18.75 (from £12.21 to £12.71 per hour). A part-time worker on 20 hours will see a weekly increase of about £10.00. However, part-time workers are more likely to be in lower-paid occupations and may have less predictable hours. The ONS notes that caring, leisure and other service occupations saw the largest percentage increase in median weekly earnings between 2024 and 2025, reflecting the NLW uplift.

NHS Pay Scales and Other Sector Benchmarks

For comparison, the NHS pay scales for 2026/27 show that the lowest band (Band 1, closed to new entrants) starts at £12.92 per hour, slightly above the NLW. Band 6, which includes many nurses and allied health professionals, starts at £20.44 per hour. These rates include higher cost area supplements (HCAS) for London and other high-cost areas. The NHS Employers website provides detailed annual and hourly rates. This illustrates that while the NLW sets a floor, many sectors offer higher wages.

Using the Hourly to Salary Calculator

To get a personalised estimate, you can use our salary data page which includes median earnings benchmarks. Remember that the conversion assumes a steady contracted week with no unpaid overtime, bonuses, tips, or salary sacrifice. Always check your contract and official GOV.UK guidance for your specific situation.

Key Takeaways

• The minimum wage rise 2026 increases the NLW to £12.71 per hour for workers aged 21+.
• Annual salary estimates depend on hours per week; 37.5 hours is a common full-time assumption.
• Part-time workers benefit from the same hourly increase but have lower annual earnings.
• ONS data shows median full-time annual earnings of £39,039 for those in jobs for at least a year (April 2025).
• Use the conversion rule: annual ≈ hourly × hours per week × 52.