What is minimum wage going up to in 2026?

If you're wondering what is minimum wage going up to in 2026, the answer is clear: from 1 April 2026, all rates of the National Minimum Wage (NMW) and National Living Wage (NLW) increase. The main rate for workers aged 21 and over rises to £12.71 per hour – a 4.1% increase from the previous £12.21. This follows recommendations from the Low Pay Commission and is now law under the National Minimum Wage (Amendment) Regulations 2026.

Here are the new rates:

• 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
• Accommodation Offset: £11.10 per day (if employer provides accommodation)

These rates apply across England, Wales, Scotland, and Northern Ireland. The Government expects the NLW to stay ahead of inflation, providing a real-terms increase for the lowest-paid workers.

How the rates are set

The Low Pay Commission recommends the NLW based on two-thirds of median hourly earnings. For 2026, the central estimate for the 2027 rate is £13.18, indicating further increases ahead.

Converting the new hourly minimum wage to an annual salary

To understand what the new minimum wage means for your yearly income, you can convert the hourly rate to an annual figure. The standard conversion used by many employers (including the NHS) assumes a 37.5-hour working week and 52 paid weeks per year.

Full-time annual salary at NLW: £12.71 × 37.5 hours × 52 weeks = £24,784.50

For part-time workers, simply replace 37.5 with your contracted weekly hours. For example, a 20-hour week would give: £12.71 × 20 × 52 = £13,218.40 per year.

Remember that this is gross pay before tax, National Insurance, and any deductions. Your take-home pay will also depend on whether you receive Universal Credit or other benefits. The GOV.UK analysis notes that NLW workers on Universal Credit may see a larger increase in take-home income because the standard allowance rises by 6.2% – higher than the 4.1% wage increase.

Use our Hourly to Salary calculator to quickly convert any hourly rate to annual, monthly, or weekly figures.

What about other sectors? NHS pay scales and London weighting

While the NLW is the legal minimum, many employers pay more. The NHS pay scales for 2026/27 show entry-level rates above the NLW:

• Band 1 (closed to new entrants): £12.92/hr
• Band 2: £12.92/hr
• Band 3: £13.17/hr
• Band 4: £14.52/hr
• Band 5 (newly qualified nurses): £16.40/hr

These rates are for standard pay. In high-cost areas like London, High Cost Area Supplements (HCAS) add a percentage:

• Inner London: 20% of basic salary (min £5,794, max £8,746)
• Outer London: 15% (min £4,870, max £6,137)
• Fringe: 5% (min £1,346, max £2,270)

For example, an NHS Band 2 worker in inner London earns £15.89 per hour including HCAS – well above the NLW.

If you're comparing job offers, always check whether London weighting or other allowances are included. Our salary articles cover sector-specific pay in more detail.

Key considerations for part-time workers and overtime

The new minimum wage applies equally to part-time workers – you must be paid at least the hourly rate for every hour worked. However, your annual salary will be proportionally lower.

Overtime is not guaranteed at a higher rate unless your contract says so. The NLW is the minimum for all hours worked, but many employers pay time-and-a-half or double time for overtime. Always check your contract.

Salary sacrifice schemes (e.g., pension contributions, cycle-to-work) reduce your taxable pay but do not reduce the hourly rate you must receive – your effective hourly rate after sacrifice must still meet the NLW.

Summary

The 2026 minimum wage increase means:

• £12.71/hr for workers aged 21+ (NLW)
• £10.85/hr for 18-20 year olds
• £8.00/hr for 16-17 year olds and apprentices
• Full-time annual equivalent (37.5 hrs) ≈ £24,785
• NHS and other public sector roles typically pay more, especially with London weighting

For more detailed salary data and comparisons, visit our salary data page. Always check official GOV.UK guidance for the latest rates and your employment rights.