What Is UK Minimum Wage? Understanding the Basics

If you are a UK employee or job seeker, you have probably asked yourself: what is UK minimum wage and how does it affect your take-home pay? The answer is not always straightforward, especially when overtime, London weighting, and different age bands come into play. This article cuts through the confusion using the latest official data from GOV.UK and the Office for National Statistics (ONS).

The Current Minimum Wage Rates (from April 2026)

From 1 April 2026, the National Living Wage (NLW) for workers aged 21 and over rises to £12.71 per hour. Younger workers and apprentices have separate rates:

• 18 to 20 years old: £10.85 per hour
• Under 18: £8.00 per hour
• Apprentices (under 19 or in first year): £8.00 per hour

These rates are set by the Low Pay Commission and enacted by the National Minimum Wage (Amendment) Regulations 2026. The NLW target is to reach two-thirds of median hourly earnings, and the 2026 increase of 4.1% continues that path.

How Much Is That Per Year?

Using a standard full-time week of 37.5 hours (common in many sectors), the annual equivalent of the NLW is roughly:

• £12.71 × 37.5 hours × 52 weeks = £24,784.50

For comparison, the ONS Annual Survey of Hours and Earnings (ASHE) for April 2025 reported median gross annual earnings for full-time employees at £39,039 – well above the minimum. The median hourly rate (excluding overtime) was £19.67.

Remember that these conversions assume you work every week of the year with no unpaid leave. Your actual annual pay may differ if you work irregular hours or have unpaid overtime.

Common Myths About Hourly Pay and Overtime

Myth 1: Overtime Must Be Paid at 1.5× Your Normal Rate

There is no law requiring employers to pay a premium for overtime. The only legal requirement is that your average hourly pay across the pay period does not fall below the minimum wage. Many employers do offer time-and-a-half or double time, but it is a contractual perk, not a statutory right. Always check your employment contract.

Myth 2: The Minimum Wage Is the Same for Everyone

As shown above, the minimum wage depends on age and apprenticeship status. A 19-year-old can legally be paid £10.85, while a 21-year-old doing the same job must get at least £12.71. This can create confusion, especially in workplaces with mixed-age teams.

Myth 3: London Weighting Means Higher Minimum Wage

London weighting is an extra payment some employers offer to offset higher living costs. However, the legal minimum wage does not vary by region. A 21-year-old working in central London is still entitled to at least £12.71 per hour – but many employers in London pay above the minimum to attract staff.

Myth 4: Salaried Employees Are Not Entitled to the Minimum Wage

Even if you are on a fixed annual salary, your employer must ensure that your average hourly pay (based on your contracted hours) meets the minimum wage. If your salary works out below the NLW per hour, you have a legal right to be paid more.

How to Convert Hourly Pay to Annual Salary

A simple formula is:

Annual salary ≈ hourly rate × hours per week × 52

For a 37.5-hour week:

• £12.71/hr → £24,785
• £15.00/hr → £29,250
• £19.67/hr (median) → £38,357

But this is a rough guide. Your actual annual earnings may be higher if you receive overtime, bonuses, or commission, or lower if you have unpaid leave. Use our Hourly to Salary calculator for a more precise estimate.

For more context on how UK salaries compare, visit our salary data page.

Key Takeaways

• What is UK minimum wage? From April 2026, the National Living Wage is £12.71 per hour for workers aged 21 and over.
• Overtime rules are not set by law – check your contract.
• The median full-time salary in the UK is around £39,039, well above the minimum.
• Always convert hourly rates to annual using your actual contracted hours.

Understanding your rights and the difference between hourly and annual pay helps you negotiate better and avoid common pitfalls. For further reading, see our salary articles on pay scales and overtime.

Disclaimer

Hourly-to-salary figures assume a steady contracted week with no unpaid overtime, bonus, tips or salary sacrifice. Annual ≈ hourly × hours/week × 52. Actual pay depends on rota, holiday pay method, London weighting and overtime rules. Always check your contract and official GOV.UK guidance.