Understanding the minimum wage 2026/27 rates

The UK government has confirmed the new minimum wage rates that take effect from 1 April 2026. These rates apply across England, Scotland, Wales and Northern Ireland. The headline change is the National Living Wage (NLW) for workers aged 21 and over rising to £12.71 per hour, up from £12.21. This represents a 4.1% increase, designed to keep pace with the cost of living and provide a real-terms boost for the lowest-paid employees.

For younger workers and apprentices, the rates are:

• 18 to 20 years old: £10.85 per hour (8.5% increase)
• Under 18: £8.00 per hour (6% increase)
• Apprentice rate: £8.00 per hour (6% increase)

These figures are set out in the National Minimum Wage (Amendment) Regulations 2026 and are published on GOV.UK National Minimum Wage rates. The accommodation offset, which employers can deduct if they provide living accommodation, also rises to £11.10 per day.

Converting hourly to annual salary: the 37.5-hour assumption

When converting an hourly rate to an annual salary, the most common method used in UK payroll is to multiply the hourly rate by the number of contracted hours per week, then by 52 weeks. However, the number of hours in a “full-time” week varies by industry and employer. Many public sector roles, such as those in the NHS, use a standard 37.5-hour week. Private sector roles often use 35, 37.5, 40 or even 45 hours.

Using the NLW 2026/27 rate of £12.71:

• 37.5 hours/week: £12.71 × 37.5 × 52 = £24,784.50 per year
• 40 hours/week: £12.71 × 40 × 52 = £26,436.80 per year

This site’s Hourly to Salary calculator lets you adjust the weekly hours to match your own contract. The conversion rule of thumb is: annual salary ≈ hourly rate × hours per week × 52. Remember that this assumes you are paid for 52 weeks and does not account for unpaid leave, overtime, bonuses or salary sacrifice.

Part-time and full-time considerations

Part-time workers are entitled to the same minimum wage hourly rate as full-time workers. However, their annual salary will be proportionally lower because they work fewer hours. For example, a part-time worker on the NLW working 20 hours per week would earn: £12.71 × 20 × 52 = £13,218.40 per year.

It is important to note that the National Living Wage and National Minimum Wage are minimum hourly rates, not minimum weekly or annual salaries. Employers must pay at least the relevant hourly rate for every hour worked, including time spent training or travelling for work (subject to certain rules).

Part-time workers should also check whether their contract includes a “pro-rata” salary – a full-time equivalent salary scaled down by hours. In that case, the hourly rate may be higher than the minimum wage, but the annual figure will still reflect the reduced hours.

How the minimum wage 2026/27 compares to median earnings

According to the latest ONS Annual Survey of Hours and Earnings (ASHE), the median full-time gross annual pay in the UK is around £39,039, which equates to roughly £20.02 per hour based on a 37.5-hour week. This means the NLW of £12.71 is about 63% of the median hourly rate. The gap reflects the fact that minimum wage jobs are typically in sectors like retail, hospitality and care, where average earnings are lower.

For context, the NHS pay scales for 2026/27 show entry-level roles (Band 2) starting at £12.92 per hour (outer London HCAS) and Band 5 (newly qualified nurses) starting at £16.40 per hour. These rates are above the NLW, reflecting the skilled nature of healthcare work.

NHS and public sector pay scales

The NHS Employers website publishes annual and hourly pay scales for 2026/27. These are relevant for anyone considering a career in the NHS or comparing their current pay to public sector benchmarks. For example:

• Band 2 (entry level, e.g. healthcare assistant): £12.92 per hour (outer London)
• Band 5 (newly qualified nurse): £16.40 per hour
• Band 6 (experienced nurse or specialist): £20.44 per hour

These rates include Higher Cost Area Supplements (HCAS) for London and surrounding areas. Without HCAS, the base rates are slightly lower. The NHS uses a standard 37.5-hour week for full-time staff, so annual salaries can be calculated using the same formula.

Caveats and further reading

When using any hourly-to-salary conversion, remember that your actual take-home pay depends on:

• Income Tax and National Insurance deductions (the Personal Allowance for 2026/27 is £12,570)
• Pension contributions (auto-enrolment minimum is 5% employee, 3% employer)
• Student loan repayments (Plan 1, 2, 4 or 5)
• Any London weighting or location allowances
• Overtime, shift premiums, bonuses and tips

Always check your employment contract and official guidance on. For more detailed salary data and comparisons, visit our salary data page or browse salary articles for industry-specific insights.

This article is for informational purposes only and does not constitute financial or legal advice.