Understanding the 20 Year Old Minimum Wage

If you are 20 years old and working in the UK, your employer must pay you at least the National Minimum Wage (NMW) rate for 18 to 20 year olds. From April 2026, that rate is £10.85 per hour. This is a significant increase from the previous £10.00 rate, representing an 8.5% rise. The government has stated its aim to eventually align the 18-20 rate with the National Living Wage (NLW) for those aged 21 and over, which currently stands at £12.71 per hour.

This article explains the current 20 year old minimum wage, how to convert it to an annual salary, and what factors like part-time hours or London weighting might affect your pay. Use our Hourly to Salary tool to quickly see your own figures.

The 2026 Rates at a Glance

According to GOV.UK National Minimum Wage rates, the following rates apply from 1 April 2026:

• National Living Wage (21 and over): £12.71 per hour
• 18-20 Year Old Rate: £10.85 per hour
• 16-17 Year Old Rate: £8.00 per hour
• Apprentice Rate: £8.00 per hour

These rates are statutory minimums. Your employer cannot pay you less, but they may pay more. The 18-20 rate applies to anyone aged 18, 19, or 20, regardless of whether they are in full-time education or training.

Converting Hourly to Annual Salary: The 37.5-Hour Assumption

When converting an hourly wage to an annual salary, a common assumption is a 37.5-hour working week (typical for many full-time roles). Multiply the hourly rate by weekly hours and then by 52 weeks:

• 20 year old minimum wage at 37.5 hrs/week: £10.85 × 37.5 × 52 = £21,142.50 per year
• At 40 hrs/week: £10.85 × 40 × 52 = £22,568.00 per year

If you work part-time, simply adjust the weekly hours. For example, 20 hours per week gives: £10.85 × 20 × 52 = £11,284.00 per year.

Remember that these are gross figures. You will pay Income Tax (starting at £12,570 personal allowance for 2026/27) and National Insurance contributions. Your actual take-home pay will be lower.

Part-Time vs Full-Time: Why Hours Matter

The 20 year old minimum wage is an hourly rate, so your annual earnings depend entirely on how many hours you work each week. The ONS Annual Survey of Hours and Earnings (ASHE) defines full-time as more than 30 paid hours per week (or 25 for teachers). Part-time is 30 hours or fewer. Many young workers in hospitality and retail work part-time hours, meaning their annual salary from the minimum wage will be lower than the full-time equivalent.

For example, a 20-year-old working 16 hours per week at £10.85 would earn approximately £9,027.20 per year – well below the Personal Allowance, so no Income Tax would be due. Understanding your contracted hours is crucial when budgeting.

Overtime and London Weighting

The minimum wage applies to each hour worked. If you work overtime, your employer must still pay at least the minimum wage for those extra hours. Some employers offer a higher overtime rate, but this is not required by law as long as the average across all hours meets the minimum.

London weighting is an additional payment some employers offer to cover the higher cost of living in London. It is not a legal requirement, but many large employers in London pay above the minimum wage. If you work in London, your actual hourly rate may be higher than £10.85. Always check your contract.

How the 20 Year Old Minimum Wage Compares to UK Averages

The ONS Low and high pay bulletin shows that in April 2025, median hourly pay for full-time employees was £19.67, and median full-time annual earnings were £39,039. The 20 year old minimum wage of £10.85 is well below these medians, reflecting that younger workers tend to be in lower-paid roles. However, the proportion of low-paid jobs (below two-thirds of median hourly pay) fell to just 2.5% in 2025, the lowest on record, partly due to minimum wage increases.

What If You Are Paid Less?

If you believe you are being paid less than the 20 year old minimum wage, you can check using the GOV.UK minimum wage calculator. Employers who underpay can be investigated by HMRC and face penalties. Keep records of your hours and payslips.

Summary

The 20 year old minimum wage is £10.85 per hour from April 2026. To estimate your annual salary, multiply by your weekly hours and 52. Part-time workers earn proportionally less. Always check your contract for any London weighting or overtime agreements. For more detailed breakdowns, visit our salary data page or read our salary articles for tips on negotiating pay.

Remember, these figures are a guide. Your actual earnings depend on your specific employment terms. Use our Hourly to Salary tool to run your own calculations.