Understanding the Minimum Wage Now: Hourly Rates, Annual Salary and Part-Time vs Full-Time Hours

Knowing the minimum wage now is essential for anyone earning an hourly rate in the UK. Whether you are starting a new job, negotiating a pay rise, or simply checking your payslip, understanding how hourly pay translates into annual salary – and how part-time hours affect that calculation – helps you make informed decisions.

Current National Minimum Wage and National Living Wage Rates (April 2026)

From 1 April 2026, the UK government has increased all minimum wage rates following recommendations from the Low Pay Commission. The rates are:

• National Living Wage (21 and over): £12.71 per hour (up from £12.21)
• 18–20 year old rate: £10.85 per hour (up from £10.00)
• 16–17 year old rate: £8.00 per hour (up from £7.55)
• Apprentice rate: £8.00 per hour (up from £7.55)

These rates apply to most employees, with limited exceptions such as those on accredited training schemes. The accommodation offset – the amount an employer can deduct for providing accommodation – also rises to £11.10 per day.

Converting Hourly Rates to Annual Salary: The Hours Assumption

To convert an hourly wage to an annual salary, you need to know your contracted weekly hours. The standard formula is:

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

For example, at the National Living Wage of £12.71 per hour:

• Working 37.5 hours per week (common in NHS and many office roles) gives £12.71 × 37.5 × 52 = £24,784.50 per year.
• Working 40 hours per week gives £12.71 × 40 × 52 = £26,436.80 per year.
• Working 20 hours per week (part-time) gives £12.71 × 20 × 52 = £13,218.40 per year.

This is a gross figure before deductions. The on-site Hourly to Salary tool lets you enter your own hours to get a precise estimate.

Part-Time vs Full-Time: Why Hours Matter

The distinction between part-time and full-time is important for salary comparisons. The Office for National Statistics (ONS) defines full-time as working more than 30 paid hours per week (or 25 for teaching professions). Part-time is 30 hours or fewer.

According to the ONS Annual Survey of Hours and Earnings (ASHE) for April 2025:

• Median weekly earnings for full-time employees were £766.60.
• Median weekly earnings for part-time employees were £280.00.

This large gap is partly because part-time workers tend to be in lower-paid occupations and also work fewer hours. However, the hourly rate for part-time workers can be the same as for full-time colleagues doing similar work. Always check that your hourly pay meets the legal minimum, regardless of your hours.

Median Earnings Benchmarks

While the minimum wage sets a floor, most workers earn more. The ONS ASHE 2025 report shows:

• Median gross annual earnings for full-time employees: £39,039.
• Median hourly earnings (excluding overtime) for full-time employees: £19.67.

These figures are for employees who have been in their job for at least a year. They include pay affected by absence but exclude bonuses and overtime. The median is the midpoint – half of employees earn more, half earn less.

For comparison, NHS pay scales for 2026/27 start at £12.92 per hour for Band 1 (closed to new entrants) and £13.17 for Band 3. These are above the minimum wage but still below the national median.

Overtime, London Weighting and Other Adjustments

Your actual take-home pay may differ from a simple hourly-to-annual conversion if you:

• Work overtime (often paid at a higher rate, e.g., time-and-a-half).
• Receive London weighting or other location allowances (common in London and the South East).
• Have bonuses, tips, or commission.
• Use salary sacrifice schemes (e.g., pension, cycle to work).

Always read your contract carefully. The salary data page on this site provides more context on typical earnings by occupation and region.

Why the Minimum Wage Now Matters

The minimum wage now affects millions of workers. The 2026 increase of 4.1% for the National Living Wage is designed to keep pace with average earnings while protecting low-paid workers. For someone working full-time at 37.5 hours, the rise from £12.21 to £12.71 adds about £975 to their annual gross pay.

If you are a job seeker, knowing the minimum wage now helps you spot unfair pay offers. If you are an employer, it ensures compliance with the law. The government provides a minimum wage calculator to check whether you are being paid correctly.

Summary

• The minimum wage now for workers aged 21+ is £12.71 per hour from April 2026.
• To estimate your annual salary, multiply your hourly rate by your weekly hours and then by 52.
• Part-time workers earn less annually but are entitled to the same hourly minimum.
• The national median full-time salary is around £39,039, well above the minimum.
• Always consider overtime, location allowances, and deductions when comparing offers.

For more detailed conversions and to see how different hours affect your pay, use the Hourly to Salary tool. And for the latest official rates, always refer to GOV.UK.