Skip to content
Hourly→Salary

what is minimum wage in uk

What is Minimum Wage in UK? 2026 Rates and Common Myths About Hourly Pay and Overtime

As of April 2026, the National Living Wage for workers aged 21 and over is £12.71 per hour, equating to approximately £24,784.50 per year for a 37.5-hour week.

Understanding the UK Minimum Wage in 2026

If you’re asking what is minimum wage in uk, the answer depends on your age and whether you are an apprentice. From April 2026, the government has increased all minimum wage rates following recommendations from the Low Pay Commission. The National Living Wage (for those aged 21 and over) rises to £12.71 per hour, a 4.1% increase. The 18-20 rate jumps to £10.85 (up 8.5%), while the 16-17 and apprentice rates both increase to £8.00 (up 6%). These figures are confirmed in the National Minimum Wage (Amendment) Regulations 2026 and published by GOV.UK.

How Minimum Wage Affects Annual Salary

Converting an hourly rate to an annual salary is straightforward if you know your weekly hours. Most full-time roles assume 37.5 hours per week, though some contracts use 35 or 40 hours. Using 37.5 hours × 52 weeks, the National Living Wage gives an annual salary of about £24,784.50. For the 18-20 rate, that’s roughly £21,157.50, and for the apprentice rate, £15,600. These figures are gross – before tax, National Insurance, and any deductions.

It’s important to remember that the minimum wage is a per-hour entitlement. Employers cannot average your pay over a longer period to meet the minimum. If you work overtime, each hour must still be paid at or above the relevant minimum rate.

Common Myths About Hourly Pay and Overtime

Myth 1: Overtime is always paid at time-and-a-half

Many workers assume that any hours beyond their contracted week must be paid at a premium rate. In reality, UK law does not mandate a higher rate for overtime. The only legal requirement is that you receive at least the National Minimum Wage for every hour worked. Enhanced overtime rates (e.g., 1.5× or double time) are a matter of contract or collective agreement. Always check your employment contract or staff handbook.

Myth 2: A salary job is always better than hourly pay

Salaried positions often come with benefits like sick pay, pension contributions, and job security. However, they may also include unpaid overtime – meaning you work extra hours without additional pay. Hourly workers, on the other hand, are typically paid for every hour they work, including overtime. The best choice depends on your industry, personal circumstances, and how your employer handles extra hours.

Myth 3: London weighting is guaranteed for all London workers

Some employers in London pay a “London weighting” allowance to help with higher living costs, but it is not a legal requirement. The minimum wage rates are the same across the UK, so a worker in central London is entitled to the same £12.71 per hour as someone in rural Scotland. If you work in London, check your contract for any additional allowances.

Myth 4: Annual salary is simply hourly rate × 2,080 hours

A common US-based rule uses 2,080 hours (40 hours × 52 weeks). In the UK, full-time hours are often 37.5 or 35 per week, and many roles include paid holiday. The more accurate conversion for UK workers is: hourly rate × weekly hours × 52. For example, the median full-time hourly pay of £19.67 (ONS ASHE 2025) multiplied by 37.5 hours × 52 weeks gives about £38,356 – close to the ONS median annual figure of £39,039. The small difference reflects variations in hours and overtime.

Using the ONS Earnings Data as a Benchmark

The Office for National Statistics (ONS) publishes the Annual Survey of Hours and Earnings (ASHE) each year. The latest data (April 2025) shows median full-time weekly earnings of £766.60 and median hourly earnings (excluding overtime) of £19.67. These figures are useful for comparing your own pay against national averages. Remember that medians are less affected by extreme high or low earners than averages.

If you are paid hourly, you can use our Hourly to Salary tool to see how your rate stacks up against these benchmarks. For more detailed breakdowns by occupation and region, visit our salary data page.

Key Takeaways

  • The what is minimum wage in uk answer for 2026: £12.71 (21+), £10.85 (18-20), £8.00 (16-17 and apprentices).
  • Converting hourly to annual: multiply by your weekly hours and 52 weeks.
  • Overtime does not legally require a premium rate – check your contract.
  • London weighting is not a legal entitlement.
  • Use ONS ASHE data to benchmark your earnings.

Always verify your pay against official sources and your employment contract. If you suspect you are being paid below the minimum wage, you can report it to HMRC.

Frequently Asked Questions

What is the minimum wage in the UK for 2026?

From April 2026, the National Living Wage for workers aged 21 and over is £12.71 per hour. The 18-20 rate is £10.85, and the 16-17 and apprentice rates are both £8.00 per hour. These rates are set by the Low Pay Commission and confirmed by the government. Always check the latest rates on GOV.UK.

Is overtime always paid at a higher rate?

No, there is no legal requirement to pay overtime at a premium rate (e.g., time-and-a-half) unless your employment contract specifically promises it. However, all overtime hours must still be paid at least the National Minimum Wage for your age group. Some sectors, like healthcare or retail, may have collective agreements that include enhanced overtime rates.

How do I convert my hourly wage to an annual salary?

A common rule of thumb is to multiply your hourly rate by your weekly contracted hours and then by 52 weeks. For example, £12.71 per hour × 37.5 hours × 52 weeks = approximately £24,784.50 per year. This assumes no unpaid overtime, bonuses, or deductions. Use our Hourly to Salary tool for a quick estimate.

FAQs

What is the minimum wage in the UK for 2026?

From April 2026, the National Living Wage for workers aged 21 and over is £12.71 per hour. The 18-20 rate is £10.85, and the 16-17 and apprentice rates are both £8.00 per hour. These rates are set by the Low Pay Commission and confirmed by the government. Always check the latest rates on GOV.UK.

Is overtime always paid at a higher rate?

No, there is no legal requirement to pay overtime at a premium rate (e.g., time-and-a-half) unless your employment contract specifically promises it. However, all overtime hours must still be paid at least the National Minimum Wage for your age group. Some sectors, like healthcare or retail, may have collective agreements that include enhanced overtime rates.

How do I convert my hourly wage to an annual salary?

A common rule of thumb is to multiply your hourly rate by your weekly contracted hours and then by 52 weeks. For example, £12.71 per hour × 37.5 hours × 52 weeks = approximately £24,784.50 per year. This assumes no unpaid overtime, bonuses, or deductions. Use our [Hourly to Salary](/calculator) tool for a quick estimate.

Hourly to Salary

Pull → year

£477/wk ·£2,065/mo

£24,785

Formula: hourly × hours/week × 52 · tip shows annual gross