Understanding the new minimum wage rates

If you are asking what is the new minimum wage in the UK for 2026/27, the answer depends on your age and employment status. From 1 April 2026, the National Living Wage (NLW) for workers aged 21 and over rises to £12.71 per hour, a 4.1% increase on the previous £12.21. This follows recommendations from the Low Pay Commission and is designed to keep pace with the cost of living. For younger workers, the 18-20 rate increases to £10.85 per hour (up 8.5%), while the under-18 and apprentice rates both rise to £8.00 per hour (up 6%). These figures are published on GOV.UK and apply across the UK.

How to convert hourly to annual salary

To turn an hourly rate into a yearly salary, use the standard formula: hourly rate × weekly contracted hours × 52 weeks. For a full-time employee working 37.5 hours per week (common in the NHS and many public sector roles), the NLW of £12.71 gives:

• £12.71 × 37.5 = £476.63 per week
• £476.63 × 52 = £24,784.50 per year (gross)

If you work different hours, simply adjust the weekly figure. For example, a 30-hour week at the same rate yields £12.71 × 30 × 52 = £19,827.60 per year. Our salary calculator can help you run these conversions quickly.

It is important to remember that this is gross pay before tax and National Insurance. The Income Tax Personal Allowance is around £12,570, so only earnings above that are taxed. Additionally, the government has frozen tax thresholds, which means that as wages rise, more income may fall into taxable bands. GOV.UK analysis shows that a full-time NLW worker (35 hours per week) would see a 3.3% increase in weekly take-home pay after accounting for tax and benefits.

What about overtime and London weighting?

The conversion above assumes a steady contracted week with no unpaid overtime, bonus, tips, or salary sacrifice. In practice, many roles include overtime pay (often at time-and-a-half or double time) and location-based supplements. For example, NHS Employers published 2026/27 pay scales that include Higher Cost Area Supplements (HCAS). In inner London, a Band 5 nurse on the entry step earns £16.40 per hour basic, but with HCAS at 20% the hourly value rises to £19.68. Outer London adds 15% (minimum £4,870 per year) and fringe areas add 5% (minimum £1,346 per year). These supplements can significantly boost annual earnings.

Similarly, teachers, police, and other public sector workers often have their own pay scales with additional allowances. Always check your contract for the exact terms. For private sector roles, London weighting is common but not universal. The salary data section on this site provides more benchmarks.

NHS pay scales as a benchmark

The NHS is one of the UK's largest employers, and its pay scales offer a useful reference for comparing hourly rates. For 2026/27, the entry-level Band 1 (closed to new entrants) pays £12.92 per hour, slightly above the NLW. Band 2 (e.g., healthcare assistants) also starts at £12.92. Band 3 starts at £13.17, Band 4 at £14.52, and Band 5 (newly qualified nurses) at £16.40. These rates are effective from 1 April 2026 and include annual increments. The top of Band 5 reaches £19.97 per hour, while Band 6 (specialist nurses) ranges from £20.44 to £24.61. Band 7 (advanced practitioners) starts at £25.26. With HCAS, these figures increase substantially, as shown in the NHS Employers publication.

What the new minimum wage means for your take-home pay

The government expects the NLW to stay ahead of inflation up to March 2027, providing a real-terms increase for low-paid workers. However, the impact on household incomes varies. Workers who receive Universal Credit will benefit from a 6.2% increase in the standard allowance, which is higher than the 4.1% wage rise. Those who pay tax but do not receive UC may see a smaller net increase because frozen tax thresholds raise their average tax rate. For a single person working 35 hours per week at the NLW, the weekly take-home increase is estimated at £11.90 (3.3%).

Using the hourly-to-salary conversion in practice

Whether you are negotiating a pay rise, comparing job offers, or planning your budget, converting hourly rates to annual figures is a vital skill. Remember that the rule of thumb (hourly × 37.5 × 52) is a starting point. Actual pay depends on your rota, holiday pay method, and any additional payments. Always check your contract and official guidance. For more tools and articles, visit our Hourly to Salary homepage or explore topics on UK wage benchmarks.

Summary

The new minimum wage from April 2026 is £12.71 per hour for workers aged 21 and over. Younger workers and apprentices have lower rates. To convert to an annual salary, multiply by your weekly hours and 52 weeks. Consider overtime, London weighting, and tax implications for a realistic picture. Use the resources on this site to calculate your own figures and stay informed about UK pay standards.