Minimum Wage 2026 UK Per Hour: What You Need to Know

From 1 April 2026, the UK’s National Minimum Wage (NMW) and National Living Wage (NLW) rates increase. These changes affect millions of workers and are a key reference point for anyone comparing hourly jobs with salaried offers. This article explains the new rates, how to convert them to annual pay, and how they stack up against typical UK salaries.

The New Rates for 2026

GOV.UK confirms the following hourly rates from April 2026, following recommendations from the Low Pay Commission:

• National Living Wage (21 and over): £12.71 per hour (up from £12.21, a 4.1% increase)
• 18-20 Year Old Rate: £10.85 per hour (up from £10.00, an 8.5% increase)
• 16-17 Year Old Rate: £8.00 per hour (up from £7.55, a 6% increase)
• Apprentice Rate: £8.00 per hour (up from £7.55, a 6% increase)
• Accommodation Offset: £11.10 per day (up from £10.66)

These rates are set out in The National Minimum Wage (Amendment) Regulations 2026 and apply across England, Wales, Scotland and Northern Ireland. The NLW increase of 4.1% is designed to keep pace with inflation and maintain the wage’s real-terms value, according to the Low Pay Commission.

Converting Hourly Rates to Annual Salary

When comparing an hourly job with a salaried role, it helps to convert the hourly rate into an annual figure. The standard conversion used by many employers and job sites is:

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

For a typical full-time week of 37.5 hours (common in many sectors), the annual equivalents are:

• NLW (£12.71): £12.71 × 37.5 × 52 = £24,784.50
• 18-20 rate (£10.85): £10.85 × 37.5 × 52 = £21,157.50
• Under-18 / apprentice rate (£8.00): £8.00 × 37.5 × 52 = £15,600

Remember that these are gross figures before tax, National Insurance, and any pension deductions. Your actual take-home pay will also depend on whether you receive benefits like Universal Credit, which can boost net income for lower earners.

How the Minimum Wage Compares with Typical Salaries

The UK median full-time gross annual pay is around £39,039 (based on ONS data), which works out at roughly £20.02 per hour for a 37.5-hour week. The NLW of £12.71 is about 63% of that median. This gap highlights why many workers on the minimum wage are still below the national average, though the NLW has risen significantly over the past decade.

For job seekers weighing an hourly role against a salaried position, it’s important to consider not just the headline rate but also:

• Guaranteed hours: A salaried job often guarantees a set number of hours, while hourly roles may vary.
• Overtime: Hourly workers may get overtime pay (often time-and-a-half), whereas salaried staff might not.
• Benefits: Salaried roles sometimes include pension contributions, sick pay, and holiday entitlement that hourly contracts may not.
• London weighting: Jobs in London often include an extra allowance to offset higher living costs.

Use our Hourly to Salary tool to run your own comparisons with different hour assumptions.

Who Gets Which Rate?

The NLW applies to workers aged 21 and over. The 18-20 rate applies to those aged 18 to 20 inclusive. The under-18 rate applies to workers below school leaving age but above compulsory school age. The apprentice rate applies to apprentices under 19, or those aged 19 and over in the first year of their apprenticeship. Once an apprentice completes the first year and is 21 or over, they become entitled to the NLW.

Impact on Take-Home Pay

The Low Pay Commission notes that the interaction with tax and benefits means the actual increase in take-home pay varies. For a single person working full-time (35 hours) on the NLW, weekly take-home income rises by about 3.3% (roughly £11.90). For a couple with children receiving Universal Credit, the increase can be higher because benefits also rise. Tax thresholds remain frozen, which slightly reduces the net gain for those who pay tax.

Why the Minimum Wage Matters for Salary Comparisons

Even if you are not on the minimum wage, the NLW acts as a floor for the labour market. Many employers set their pay scales relative to it. For example, NHS and teacher pay scales often reference the NLW as a baseline. When you see a job advert offering “£12.71 per hour” or “£24,785 per year”, you now know that is the legal minimum for a 21+ worker. Anything above that is a premium.

For more detailed salary benchmarks, visit our salary data page, which includes median pay by occupation and region.

Key Takeaways

• The minimum wage 2026 UK per hour for adults (21+) is £12.71.
• Annual equivalent at 37.5 hours/week is £24,784.50.
• Lower rates apply for 18-20 year olds (£10.85) and under-18s/apprentices (£8.00).
• The UK median full-time salary is about £39,039, so NLW is roughly 63% of the median.
• Always check your contract for guaranteed hours, overtime, and any London weighting.

Understanding these figures helps you make informed decisions when comparing hourly and salaried job offers. Bookmark our Hourly to Salary page for quick conversions anytime.