What Is the Minimum Wage 2026? A Guide to the New Rates

If you’ve been asking what is the minimum wage 2026, the answer is straightforward: from April 2026, the National Living Wage (NLW) for workers aged 21 and over rises to £12.71 per hour. That’s a 4.1% increase of 50p, following recommendations from the Low Pay Commission. For a full-time worker on a 37.5-hour week, that works out at roughly £24,785 a year before tax and National Insurance.

But the minimum wage isn’t one single figure. There are different rates for younger workers and apprentices:

• 18-20 year olds: £10.85 per hour (up 8.5%)
• 16-17 year olds: £8.00 per hour (up 6%)
• Apprentices: £8.00 per hour (up 6%)

These rates are set by the government and apply across the UK. They are legally enforceable – every worker must be paid at least the rate for their age group.

How to Convert Hourly Rates to Annual Salary

A common question is: “If I earn £12.71 an hour, what’s that per year?” The quick conversion is:

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

For a standard 37.5-hour week:

£12.71 × 37.5 × 52 = £24,784.50

But this assumes you work every week of the year with no unpaid time off. If you work 40 hours a week, the annual figure rises to about £26,437. Always use your actual contracted hours. Our salary articles explain more about these calculations.

Common Myths About Hourly Pay and Overtime

Myth 1: “Overtime must be paid at a higher rate.”

There’s no legal requirement to pay overtime at time-and-a-half or double time. The law only says every hour worked must be paid at least the minimum wage. Many employers do offer premium rates, but it’s a contractual matter, not a legal one. Check your contract.

Myth 2: “The minimum wage is the same for everyone.”

As we’ve seen, rates vary by age and apprenticeship status. Also, some sectors like the NHS have their own pay scales that start above the minimum wage. For example, NHS Band 2 entry is £12.92 per hour from April 2026 – already above the NLW. See the salary data page for more comparisons.

Myth 3: “London weighting is included in the minimum wage.”

No. The National Living Wage is a UK-wide minimum. London weighting or Higher Cost Area Supplements (HCAS) are additional payments made by some employers, especially in the NHS and public sector. For inner London, HCAS can add 20% of basic salary (minimum £5,794, maximum £8,746). That can push an NHS Band 5 nurse’s hourly rate from £16.40 to over £19.68.

What the 2026 Increase Means for Your Take-Home Pay

GOV.UK notes that while the NLW rises 4.1%, tax thresholds remain frozen. This means workers who pay tax but don’t receive Universal Credit may see a smaller increase in net pay. Conversely, those on Universal Credit benefit from a 6.2% increase in the standard allowance, which may boost take-home income more than the headline wage rise.

For a single full-time worker on the NLW (35 hours), the weekly take-home increase is estimated at about £11.90 (3.3%).

NHS Pay Scales 2026/27: A Benchmark

The NHS Employers pay scales for 2026/27 provide a useful benchmark for hourly and annual pay. Here are some entry points:

• Band 2 (entry): £12.92/hr – £25,272 annual
• Band 3 (entry): £13.17/hr – £25,760 annual
• Band 4 (entry): £14.52/hr – £28,392 annual
• Band 5 (entry, e.g. newly qualified nurse): £16.40/hr – £31,980 annual
• Band 6 (entry): £20.44/hr – £39,858 annual

These rates include incremental progression and HCAS for London areas. They show how the minimum wage compares to professional starting salaries.

Key Takeaways

• The 2026 National Living Wage is £12.71 per hour for ages 21+.
• Younger workers and apprentices have lower rates.
• Annual salary is roughly hourly × hours per week × 52, but actual pay depends on your rota, overtime, and benefits.
• Overtime rates are not set by law – check your contract.
• London weighting is separate from the minimum wage.

For more help converting your hourly rate to a yearly figure, try our hourly calculator. And if you’re comparing job offers, our salary articles cover everything from tax bands to sector averages.