Understanding the Minimum Wage Per Year in the UK

If you are asking what is minimum wage per year, the answer depends on your age, the current National Living Wage (NLW) rate, and the hours you work. For 2026, the UK government has confirmed new rates effective from 1 April, following recommendations from the Low Pay Commission. This article explains how to convert hourly minimum wage rates into annual salary figures, compares them with median earnings, and highlights important caveats such as London weighting and overtime.

Current Minimum Wage Rates (from April 2026)

GOV.UK states that the National Living Wage for workers aged 21 and over will rise to £12.71 per hour, an increase of 4.1% from the previous £12.21. Other rates are:

• 18–20 year old rate: £10.85 per hour
• 16–17 year old rate: £8.00 per hour
• Apprentice rate: £8.00 per hour
• Accommodation offset: £11.10 per day (used when employers provide accommodation)

These rates apply across the UK and are the legal minimums. Employers cannot pay less, though some sectors (like the NHS) have higher starting pay.

Converting Hourly Minimum Wage to Annual Salary

To find the annual equivalent of an hourly rate, use the formula:

Annual salary ≈ hourly rate × hours per week × 52 weeks

For a full-time worker on the NLW, assuming a typical 37.5-hour week (common in healthcare and many salaried roles):

• £12.71 × 37.5 × 52 = £24,784.50 per year

If you work 40 hours per week, the annual figure becomes £12.71 × 40 × 52 = £26,436.80. Always check your contracted hours, as part-time workers will earn proportionally less.

For younger workers:

• 18–20 rate (£10.85) at 37.5 hours: £21,157.50 per year
• 16–17 rate (£8.00) at 37.5 hours: £15,600 per year

These figures are gross (before tax and National Insurance). The Personal Allowance for income tax is £12,570, so a full-time NLW earner will pay some tax and NI.

How Minimum Wage Compares to Median Earnings

ONS ASHE 2025 data shows that median gross annual earnings for full-time employees were £39,039 in April 2025. Median hourly earnings (excluding overtime) were £19.67. This is substantially above the minimum wage, reflecting the fact that many roles pay more than the legal floor. The minimum wage annual figure of around £24,785 is roughly 63% of the median full-time salary.

Part-time median weekly earnings were £280.00, which equates to about £14,560 per year (assuming 52 weeks). This is close to the minimum wage for part-time hours, highlighting that many part-time roles are low-paid.

NHS Pay Scales as a Benchmark

The NHS is one of the UK’s largest employers and publishes annual pay scales. For 2026/27, NHS Employers has released rates effective from 1 April 2026. Examples include:

• Band 1 (closed to new entrants): £25,272 annual / £12.92 hourly
• Band 2 (entry): £31,066 annual / £15.89 hourly
• Band 5 (entry, typical for newly qualified nurses): £38,488 annual / £19.68 hourly
• Band 9 (top): £138,529 annual / £70.85 hourly

These rates include High Cost Area Supplements (HCAS) for London and other high-cost areas, which add a percentage (e.g., 20% for inner London). The NHS minimum (Band 1) is slightly above the NLW, reflecting the sector’s commitment to paying above the legal minimum.

Important Caveats When Converting Hourly to Annual

• Hours assumption: The conversion uses a fixed weekly hours figure. Actual contracts may specify different hours, and shift workers may have irregular patterns.
• Overtime and bonuses: The basic conversion does not include overtime pay, which is often at a higher rate (e.g., time-and-a-half). Bonuses, tips, and commission are also excluded.
• London weighting: Many employers, especially in London and the South East, add a location allowance. For example, NHS HCAS can add 5% to 20% to basic pay.
• Salary sacrifice: Schemes like pension contributions, cycle-to-work, or childcare vouchers reduce gross pay for tax purposes but do not affect the minimum wage entitlement.
• Holiday pay: The minimum wage must be paid for all hours worked, including holiday pay. Annual salary figures assume 52 weeks of pay, but statutory holiday entitlement is 5.6 weeks (including bank holidays).

For a more detailed breakdown of how your hourly rate translates into monthly or annual earnings, visit our salary articles or use the hourly calculator to experiment with different hours and rates.

Why Knowing the Minimum Wage Per Year Matters

Understanding what is minimum wage per year helps you evaluate job offers, negotiate salaries, and plan your finances. If you are comparing a salaried position with an hourly-paid role, converting both to an annual figure gives a fair comparison. Remember that salaried roles may include benefits like pension contributions, sick pay, and holiday pay, while hourly roles may offer overtime flexibility.

The government expects the NLW to stay ahead of the cost of living up to March 2027, providing a real-terms increase for low-paid workers. However, the exact impact depends on household circumstances and interactions with Universal Credit and tax.

For further reading, explore our salary data page for more UK pay benchmarks, or check topics for guides on specific industries.