What is the National Minimum Wage in the UK for 2026/27?

The National Living Wage (for workers aged 21+) is £12.21 per hour from April 2026. The rate for 18-20 year olds is £10.00, for under-18s it's £7.55, and the Apprentice rate is £7.55. These rates are reviewed annually by the Low Pay Commission and typically increase each April. For a full-time worker on the NLW doing 37.5 hours per week, this equates to approximately £23,808 per year before tax. After Income Tax and National Insurance deductions, the take-home pay would be around £21,200 annually.

Do minimum wage rates differ between England and Scotland?

No — the National Minimum Wage and National Living Wage rates are set by the UK government and apply equally across England, Scotland, Wales, and Northern Ireland. However, Scottish workers pay Income Tax under Scotland's own six-band system, which means that at certain salary levels the take-home pay differs. A full-time NLW worker in Scotland would take home slightly more than their English counterpart due to the 19% Starter Rate applying to the first portion of taxable income.

How much will I take home on minimum wage after tax?

A full-time worker aged 21+ earning the National Living Wage of £12.21 per hour in 2026/27, working 37.5 hours per week, earns approximately £23,808 gross per year. After deducting Income Tax of around £2,248 and National Insurance of approximately £898, the annual take-home pay is roughly £20,662 — or about £1,722 per month. If you also have student loan repayments, this figure will be lower. Use our free salary calculator to get a personalised breakdown.

National Minimum Wage 2026/27: Rates, Rules & What They Mean for You

Published 1 Jan 2026 · Updated 26 Feb 2026

Minimum wage workersUnder-25 employeesApprenticesEmployers & managers

Key Insight

At £12.71/hour, a full-time worker on the National Living Wage earns £24,404 per year — just under the Personal Allowance of £12,570, meaning almost all their income is taxed at the basic rate. After Income Tax and NI, actual take-home drops to roughly £20,700.

The UK National Minimum Wage (NMW) and National Living Wage (NLW) are set each April and affect millions of workers and employers. For the 2026/27 tax year, the NLW for workers aged 21 and over is £12.71 per hour — the highest ever. This guide explains the new rates, who qualifies, how the rules work, and what the increases mean for your payslip and your employer.

What Are the 2026/27 Minimum Wage Rates?

The National Minimum Wage is the same across the entire UK, including England, Wales, and Scotland. All regions follow the same rates set by the Low Pay Commission. However, take-home pay varies between Scotland and England/Wales due to different income tax rates and thresholds.

Age/Status	Hourly Rate
National Living Wage (21+)	£12.71
18–20	£10.85
16–17	£8.00
Apprentice	£8.00

Minimum Wage in Scotland vs England: 2026 Comparison

It is a common myth that Scotland has a different minimum wage. In reality, the hourly rate of £12.71 is legally mandated across the whole UK. However, your take-home pay will differ based on where you live.

Location	Gross Hourly	Monthly Take-Home*
Scotland	£12.71	£1,779
England & Wales	£12.71	£1,775

*Estimates based on 37.5h week and standard 2026/27 tax codes.

Who Qualifies for the Minimum Wage?

Most employees and workers in the UK are entitled to the NMW/NLW, including part-time, agency, and zero-hours staff.
Self-employed, company directors, and volunteers are not covered.
Au pairs, family members in the family business, and some trainees are exempt.
Apprentices under 19 or in their first year get the apprentice rate; older apprentices get the age-appropriate rate after year one.

If you think you are being underpaid, you can check your payslip and use the GOV.UK minimum wage calculator to see if you are entitled to more.

How Is the Minimum Wage Calculated?

The minimum wage is based on your average hourly pay over your pay period (weekly, fortnightly, or monthly). It includes basic pay, most bonuses, and commission, but not overtime, tips, or benefits in kind. Deductions for uniforms or equipment can reduce your effective pay below the minimum — this is illegal.

If you are paid by the piece (e.g., per item made), your average pay must still meet the minimum wage for your hours worked.

What Does a Minimum Wage Job Pay Per Year?

For a full-time worker (37.5 hours/week, 52 weeks/year) on the NLW:

Annual gross salary: £24,638
Monthly gross: £2,053
Weekly gross: £477

After tax, National Insurance, and pension, take-home pay will be lower. Your deductions depend on your tax code — learn more about what your tax code means in our guide to understanding your UK tax code. Looking for strategies to increase your take-home pay? Use our salary calculator to see the full breakdown for your situation.

How Do Minimum Wage Increases Affect Employers?

The 2026/27 NLW increase, combined with the recent employer National Insurance changes — a higher rate of 15% and lower threshold of £5,000 — means the total cost of employing a minimum wage worker is at a record high. For a full-time NLW employee:

Employer NI: (£24,638 − £5,000) × 15% = £2,946
Employer pension (3% above qualifying threshold): ~£739
Total cost to employer: ~£28,323

Small employers can offset some or all of this with the Employment Allowance (£10,500). For large employers, the cost increase is significant, especially in retail, hospitality, and care.

What If You Are Underpaid?

If you are paid less than the legal minimum, you can complain to your employer or contact HMRC anonymously. Employers who underpay face penalties and public naming. The government regularly publishes a list of employers who break minimum wage law.

Use the GOV.UK calculator to check your pay, or report underpayment if needed.

Case Study: Priya, a 22-Year-Old Retail Worker in Manchester

Priya works full-time as a retail sales assistant in Manchester, earning the National Living Wage of £12.21 per hour. She works a standard 37.5-hour week across five days, bringing her gross annual salary to £23,808 before deductions.

With the standard 1257L tax code, Priya's first £12,570 is tax-free under the Personal Allowance. The remaining £11,238 is taxed at the Basic Rate of 20%, resulting in an annual Income Tax bill of £2,248. Her employee National Insurance contribution at 8% on earnings between £12,570 and £23,808 comes to £899 per year.

Priya also has a Plan 2 student loan from her university degree. The repayment threshold for Plan 2 is £27,295 — well above her salary — so she makes zero student loan repayments in 2026/27. This is an important detail many workers miss: if your salary is below the threshold, no repayment is deducted regardless of your outstanding balance.

Her employer auto-enrolled her into a workplace pension at the minimum 5% of qualifying earnings. On qualifying earnings of £17,568 (£23,808 minus the lower qualifier of £6,240), her pension contribution is £878 per year, with her employer adding a further 3% (£527).

After all deductions, Priya's monthly take-home pay comes to approximately £1,649 — or £381 per week. While this is above the statutory minimum, the frozen Personal Allowance threshold means Priya is now paying more tax than she would have on the same real-terms wage five years ago, highlighting the impact of fiscal drag on minimum-wage workers.

See Your Take-Home Pay Instantly

Our UK Salary Calculator is updated for the 2026/27 rates. Enter your hours and pay to see your take-home pay, employer costs, and the impact of pension contributions and salary sacrifice.

Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Minimum wage rates are set by the government and can change. Always verify current rates at GOV.UK.