Understanding Minimum Wage in the UK

If you're asking "what is minimum wage" in the UK, the answer depends on your age and whether you are an apprentice. The government sets two main rates: the National Living Wage (NLW) for those aged 21 and over, and the National Minimum Wage (NMW) for younger workers. These rates are updated every April. For 2026, the NLW rises to £12.71 per hour, a 4.1% increase from the 2025 rate of £12.21, as confirmed by GOV.UK.

Current Minimum Wage Rates (April 2026)

• National Living Wage (21 and over): £12.71 per hour
• 18-20 Year Old Rate: £10.85 per hour
• 16-17 Year Old Rate: £8.00 per hour
• Apprentice Rate: £8.00 per hour (for apprentices under 19 or in their first year)

These rates apply across the UK. Employers must pay at least these amounts, and failure to do so can result in penalties. The ONS Annual Survey of Hours and Earnings (ASHE) estimates that around 447,000 jobs were paid below the minimum wage in April 2025, though this is not a direct measure of non-compliance due to allowable deductions like accommodation.

Converting Hourly Rates to Annual Salary

When comparing hourly jobs with salaried offers, it's essential to convert hourly pay to an annual figure. A standard conversion uses contracted hours per week multiplied by 52 weeks. For example:

• NLW 2026 at 37.5 hours/week: £12.71 × 37.5 × 52 = £24,784.50 per year
• NLW 2025 at 37.5 hours/week: £12.21 × 37.5 × 52 = £23,809.50 per year

For a full-time NHS Band 5 role (entry point, 2026/27): £19.68 per hour × 37.5 × 52 = £38,484 per year (NHS Employers pay scales).

Remember that this calculation assumes you are paid for all 52 weeks, including holiday pay. If your contract uses a different week count (e.g., 46.4 weeks for teachers), adjust accordingly. Our Hourly to Salary tool can help you run these conversions quickly.

The Role of Overtime and London Weighting

Hourly rates often don't include overtime pay, which is typically time-and-a-half or double time. London weighting (or Higher Cost Area Supplements, HCAS) can add a significant boost. For NHS staff in inner London, HCAS can be up to 20% of basic salary, with a minimum payment of £5,794 and a maximum of £8,746 in 2026/27. This means a Band 5 nurse in inner London could earn around £44,000+ annually, compared to the base £38,488.

Private sector London allowances vary widely, from a few thousand pounds to over £10,000 for some professional roles. Always check your contract for any location-based supplements.

How Minimum Wage Compares to Median Earnings

The ONS reports that in April 2025, median hourly pay for all employees was £17.96. Jobs paying less than two-thirds of the median (£11.97) are considered low-paid – only 2.5% of jobs fell into this category, the lowest since records began in 1997. Jobs paying more than 1.5 times the median (£26.94) are high-paid, accounting for 23.2% of jobs.

This means the National Living Wage (£12.21 in 2025) sits just above the low-pay threshold, reflecting the government's aim to keep minimum wage workers ahead of the cost of living. The 2026 increase to £12.71 is expected to maintain that position.

Comparing Hourly Jobs with Salaried Offers

When weighing an hourly job against a salaried role, consider:

• Guaranteed hours: Salaried roles often have a fixed annual salary regardless of hours worked, while hourly jobs may have variable shifts.
• Overtime: Hourly workers typically get paid extra for overtime; salaried workers may not.
• Benefits: Salaried roles often include pension contributions, sick pay, and holiday pay as standard. Hourly workers may receive statutory minimums.
• Stability: Salaried contracts usually offer more predictable income.

For example, a warehouse job paying £12.71 per hour (NLW) for 40 hours a week would yield £26,436.80 annually. A salaried administrative role at £25,000 might offer better benefits and job security, even though the hourly rate appears lower when calculated.

Use our salary articles for deeper comparisons between hourly and salaried work.

NHS Pay Scales as a Benchmark

The NHS is one of the UK's largest employers and its pay bands are often used as a benchmark for public sector roles. For 2026/27, the bands range from Band 1 (closed to new entrants, £25,272 annual) to Band 9 (top £138,529). Hourly rates start at £12.92 for Band 1 and go up to £70.85 for Band 9 top. These rates include HCAS for London areas.

If you're considering a career in healthcare, knowing these bands helps you understand progression. For instance, a Band 5 nurse can move up steps within the band, reaching a top rate of £23.96 per hour (£46,852 annual).

Key Takeaways

• The minimum wage in 2026 is £12.71 for those 21 and over.
• To convert hourly to annual, multiply by weekly hours and 52.
• Always factor in overtime, London weighting, and benefits when comparing hourly and salaried offers.
• Official sources like GOV.UK, ONS, and NHS Employers provide reliable benchmarks.

For more tools and data, explore our topics page or learn about salary data trends.