Understanding the Minimum Wage Per Year in the UK

If you’re comparing hourly jobs with salaried offers, knowing the minimum wage per year is a useful starting point. The UK government sets minimum hourly rates that change each April, and converting those rates into an annual figure helps you see how they stack up against typical full-time salaries.

What Is the National Living Wage for 2026/27?

From 1 April 2026, the National Living Wage (NLW) for workers aged 21 and over rises to £12.71 per hour, according to the Low Pay Commission’s report published by GOV.UK. This is a 4.1% increase from the previous £12.21. For younger workers, the rates are:

• 18-20 year olds: £10.85 per hour
• 16-17 year olds: £8.00 per hour
• Apprentices: £8.00 per hour

To work out the minimum wage per year, multiply the hourly rate by your contracted weekly hours and then by 52 weeks. For a standard 37.5-hour week, the NLW gives:

• 21+: £12.71 × 37.5 × 52 = £24,784.50
• 18-20: £10.85 × 37.5 × 52 = £21,157.50
• 16-17 / Apprentice: £8.00 × 37.5 × 52 = £15,600

These figures assume you work every week of the year with no unpaid leave. In practice, your actual pay may differ if you work part-time, have irregular shifts, or receive holiday pay differently.

How to Convert Hourly Pay to Annual Salary

A simple rule of thumb is: annual salary ≈ hourly rate × hours per week × 52. Many full-time roles use 37.5 or 40 hours per week. For example:

• £12.71/hr × 37.5 hrs × 52 = £24,784.50
• £12.71/hr × 40 hrs × 52 = £26,436.80

If you’re comparing a salaried offer with an hourly job, use this formula to see the equivalent. Remember that salaried roles may include benefits like pension contributions, sick pay, and holiday entitlement, while hourly workers might get overtime pay. Use our Hourly to Salary tool to do the maths quickly.

How the Minimum Wage Per Year Compares with UK Median Earnings

The Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE) for 2025 reports that median gross annual earnings for full-time employees were £39,039, with median hourly pay (excluding overtime) at £19.67. That means the National Living Wage of £12.71 is about 63% of the median hourly rate. This gap has narrowed in recent years as the NLW has risen faster than average earnings.

For context, many public sector roles start well above the minimum. The NHS pay scales for 2026/27, published by NHS Employers, show:

• Band 5 (newly qualified nurses): £38,488 annual (£19.68 per hour)
• Band 6 (experienced nurses/paramedics): £47,951 annual (£24.52 per hour)
• Band 2 (healthcare assistants): £31,066 annual (£15.89 per hour)

These figures include High Cost Area Supplements (HCAS) for London and surrounding areas, which can add 5% to 20% to basic pay.

London Weighting and Regional Variations

The minimum wage per year is the same across the UK, but your actual take-home pay can vary due to London weighting or employer-specific supplements. For example, NHS staff in inner London receive an additional 20% of basic salary (minimum £5,794, maximum £8,746). Similarly, many private sector employers in London and the South East offer higher rates to attract staff.

If you’re considering a job in London, factor in higher living costs. Our salary articles cover regional pay differences in more detail.

Overtime, Bonuses, and Salary Sacrifice

The minimum wage per year calculation assumes you’re paid for every hour you work. In reality, many hourly workers get overtime at 1.5× or 2× the basic rate, which can boost annual earnings. However, some salaried roles include unpaid overtime – always check your contract.

Salary sacrifice schemes (e.g., pension contributions, cycle to work) reduce your taxable pay but also lower your gross annual salary. The NLW applies to basic pay before any salary sacrifice, so your take-home may be less than the headline figure.

Key Takeaways

• The minimum wage per year for a 21+ worker on a 37.5-hour week is £24,784.50 from April 2026.
• Younger workers and apprentices have lower rates, so check your age band.
• The UK median full-time salary is £39,039, meaning the NLW is about 63% of that.
• Use our hourly calculator to convert any hourly rate to an annual figure.
• Always consider London weighting, overtime, and benefits when comparing hourly and salaried offers.

For more data on UK pay benchmarks, visit our salary data page or explore topics on minimum wage, median earnings, and public sector pay.