What Is the New Minimum Wage 2026?

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 from the previous £12.21. This rate, recommended by the Low Pay Commission and enacted by the National Minimum Wage (Amendment) Regulations 2026, applies across England, Wales, Scotland and Northern Ireland. The government expects this increase to keep the NLW ahead of the cost of living for the year ahead, providing a real-terms boost for low-paid workers.

Full Set of 2026 Minimum Wage Rates

Age group / category	Hourly rate from April 2026	Increase
National Living Wage (21+)	£12.71	+£0.50 (4.1%)
18-20 year olds	£10.85	+£0.85 (8.5%)
16-17 year olds	£8.00	+£0.45 (6.0%)
Apprentices	£8.00	+£0.45 (6.0%)
Accommodation offset (per day)	£11.10	+£0.44 (4.1%)

These rates are legally binding. Employers must pay at least the minimum for each hour worked, including time spent training, travelling on business, or on standby. The accommodation offset is the maximum daily amount an employer can deduct from wages if they provide living accommodation.

Converting Hourly Rates to Annual Salary

To estimate your annual salary from an hourly rate, multiply by your contracted weekly hours and then by 52 weeks. For a standard full-time week of 37.5 hours:

• NLW (21+): £12.71 × 37.5 × 52 = £24,784.50 per year
• 18-20 rate: £10.85 × 37.5 × 52 = £21,157.50 per year
• 16-17 rate: £8.00 × 37.5 × 52 = £15,600 per year

If you work part-time, simply replace 37.5 with your actual weekly hours. For example, 20 hours per week at the NLW gives £12.71 × 20 × 52 = £13,218.40. Remember that these are gross figures; your take-home pay will be lower after income tax, National Insurance and any pension contributions. You can experiment with different hours using our hourly calculator.

Important Caveats

• The conversion assumes a steady contracted week with no unpaid overtime, bonuses, tips or salary sacrifice.
• Holiday pay is already included in the hourly rate for most workers (rolled-up holiday pay is not permitted for most).
• Actual annual earnings may vary if your rota changes or you work overtime.

Regional and Seniority Differences in UK Pay

While the minimum wage sets a floor, many sectors pay significantly more, especially for skilled roles and in high-cost areas. The Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE) shows that median full-time gross annual pay in the UK is around £39,039, equivalent to roughly £20.02 per hour at 37.5 hours per week. This is well above the NLW, reflecting the wide range of occupations and experience levels.

NHS Pay Scales 2026/27

The NHS is one of the UK’s largest employers and its pay scales illustrate how rates rise with seniority and location. From 1 April 2026:

• Band 1 (closed to new entrants): £12.92 per hour, annual £25,272
• Band 3 (e.g. healthcare assistant): from £13.17 per hour
• Band 5 (newly qualified nurse): from £16.40 per hour, annual £31,980
• Band 6 (specialist nurse): from £20.44 per hour
• Band 8a (senior manager): from £33.89 per hour, annual £66,274

These rates are before any London weighting. The High Cost Area Supplement (HCAS) adds a significant boost:

• Inner London: 20% of basic salary, minimum £5,794, maximum £8,746 per year
• Outer London: 15%, minimum £4,870, maximum £6,137
• Fringe: 5%, minimum £1,346, maximum £2,270

For example, a Band 5 nurse in inner London could earn £16.40 + HCAS, bringing the hourly rate to around £19.68 at entry step, and annual pay to over £38,000.

Other Sectors and Seniority

Beyond the NHS, many industries have their own pay structures. Teachers, police, and civil service roles all have graded pay scales. Seniority, qualifications, and experience drive higher rates. For instance, a senior software developer in London might command £50-£70 per hour, while a retail supervisor may earn just above the NLW. Our salary data page provides more benchmarks across occupations.

Overtime, London Weighting and Tax Considerations

Overtime

Overtime pay is not guaranteed by law (except for the National Minimum Wage, which applies to all hours worked). Many employers offer time-and-a-half or double time for extra hours, but this varies. Always check your contract.

London Weighting

As seen with NHS HCAS, London weighting can add thousands to annual pay. Private sector employers often have their own London allowances, typically ranging from £3,000 to £5,000 for inner London roles.

Tax and National Insurance

For the 2026/27 tax year, the Personal Allowance remains at £12,570. A full-time NLW worker earning £24,785 will pay income tax on about £12,215 and National Insurance on earnings above the primary threshold. The government’s analysis shows that because tax thresholds are frozen, the increase in take-home pay for NLW workers who pay tax is slightly less than the headline 4.1% rise. Workers receiving Universal Credit may see a larger net gain due to the 6.2% increase in the standard allowance.

Summary

The new minimum wage 2026 brings the National Living Wage to £12.71 for those aged 21 and over, with lower rates for younger workers and apprentices. Converting to annual salary is straightforward using hours per week × 52, but remember that actual pay depends on your contract, location, and benefits. Regional supplements like London weighting can make a big difference, and seniority in sectors like the NHS pushes rates well above the minimum. For more detailed conversions and comparisons, explore our salary articles and topics pages.