Understanding the Minimum Wage from April 2026

From 1 April 2026, the UK’s statutory minimum wage rates increase, with the National Living Wage (NLW) for workers aged 21 and over rising to £12.71 per hour. This represents a 4.1% increase on the previous year’s rate of £12.21. The government expects this rate to stay ahead of the cost of living, providing a real‑terms pay rise for low‑paid workers. GOV.UK National Living Wage rates confirm the new rates, which also include £10.85 for 18‑20 year olds and £8.00 for under‑18s and apprentices.

For anyone converting an hourly rate to an annual salary, the standard formula is:

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

This assumes a steady weekly schedule with no unpaid overtime, and that holiday pay is included in the hourly rate or paid separately. The ONS defines full‑time as working more than 30 paid hours per week (or 25 for teaching professions), while part‑time is 30 hours or fewer. The choice of hours assumption significantly affects the annual figure.

Full‑Time Annual Equivalents

Using the NLW of £12.71 per hour:

• 37.5 hours per week (common in NHS and many office roles): £12.71 × 37.5 × 52 = £24,784.50 per year
• 35 hours per week (typical for some public sector jobs): £12.71 × 35 × 52 = £23,132.20 per year
• 30 hours per week (the ONS full‑time threshold): £12.71 × 30 × 52 = £19,827.60 per year

For the 18‑20 rate of £10.85 per hour at 37.5 hours: £10.85 × 37.5 × 52 = £21,157.50 per year.

These figures are gross and do not account for tax, National Insurance, or any deductions. The salary data page on this site provides further benchmarks.

Part‑Time Considerations

Part‑time workers are entitled to the same minimum hourly rates as full‑time workers, but their annual earnings are proportionally lower. For example, a part‑time employee on the NLW working 20 hours per week would earn:

£12.71 × 20 × 52 = £13,218.40 per year.

This is below the Income Tax Personal Allowance of £12,570 for 2026/27, meaning they may pay little or no income tax, though National Insurance contributions may still apply if earnings exceed the threshold.

It is important to note that part‑time workers may have different holiday pay arrangements. Some employers calculate holiday pay as a percentage of earnings (e.g., 12.07% of gross pay), while others pay an annualised salary that includes holiday entitlement. Always check your contract for the exact method.

Benchmarking Against National Averages

The ONS Annual Survey of Hours and Earnings (ASHE) for April 2025 reported median full‑time weekly earnings of £766.60, which equates to an hourly rate of approximately £19.67 (based on a 39‑hour week). The median gross annual salary for full‑time employees was £39,039. These figures are higher than the minimum wage, reflecting the wide range of occupations and experience levels. ONS ASHE 2025 provides the full breakdown.

For comparison, the NHS pay scales for 2026/27 start at Band 1 (£12.92 per hour) and Band 3 (£13.17 per hour), both above the NLW. These rates include the basic pay but may be supplemented by Higher Cost Area Supplements (HCAS) in London and the South East. The Hourly to Salary tool on this site can help you convert any hourly rate to an annual figure using your own hours.

Important Caveats

• Overtime: The minimum wage applies to each hour worked; overtime must be paid at least the minimum rate, but many employers pay a premium. Annual salary conversions using the basic rate will underestimate earnings if regular overtime is worked.
• London Weighting: Many employers in London and the South East add a geographical supplement. For example, NHS HCAS can add up to 20% of basic salary. Always check if your role includes such allowances.
• Zero‑hour contracts: Workers on zero‑hour contracts are still entitled to the minimum wage for hours actually worked, but their annual income is unpredictable and may be lower than a contracted part‑time role.
• Real‑terms impact: The GOV.UK analysis notes that a full‑time NLW worker (35 hours) would see a weekly take‑home pay increase of £11.90 after the April 2026 rise, but this can be affected by interactions with Universal Credit and other benefits.

Summary

The minimum wage from April 2026 sets a clear floor for hourly pay. Whether you work full‑time or part‑time, understanding how to convert your hourly rate to an annual salary helps you compare job offers and budget effectively. Use the formula above with your own contracted hours, and remember to factor in any additional payments or deductions. For more detailed comparisons, explore the salary articles on this site, which cover topics like tax bands and regional pay differences.

Always refer to official GOV.UK guidance for the exact rates that apply to your age and circumstances, and check your employment contract for the specific terms of your pay.