Understanding the UK Minimum Wage and How to Convert Hourly Pay to Annual Salary

If you are a UK employee or job seeker, you have likely asked "what's minimum wage uk" at some point. The answer changes every April, and it depends on your age and whether you are an apprentice. This article explains the latest rates for 2026/27, how to convert an hourly wage into an annual or monthly salary, and where your pay sits compared to national benchmarks.

National Living Wage and National Minimum Wage Rates for 2026/27

From 1 April 2026, the following hourly rates apply across the UK (GOV.UK National Minimum Wage rates):

• National Living Wage (21 and over): £12.71 per hour
• 18 to 20 year old rate: £10.85 per hour
• Under 18 rate: £8.00 per hour
• Apprentice rate: £8.00 per hour (for apprentices under 19, or aged 19+ in the first year of their apprenticeship)

These rates represent a 4.1% increase for the National Living Wage compared to the 2025/26 rate of £12.21. The 18-20 rate saw a larger 8.5% rise, and the apprentice and under-18 rates increased by 6.0% (GOV.UK The National Minimum Wage in 2026). The increases were recommended by the Low Pay Commission and enacted through the National Minimum Wage (Amendment) Regulations 2026.

Converting Hourly Rates to Annual and Monthly Salaries

To work out your approximate annual salary from an hourly rate, use this simple formula:

Annual salary ≈ hourly rate × hours per week × 52 weeks

For a typical full-time contract of 37.5 hours per week (common in many sectors, though some use 35, 37, or 40 hours), the conversions for the 2026/27 minimum wage are:

• National Living Wage (£12.71): £12.71 × 37.5 × 52 = £24,784.50 per year (about £2,065 per month before tax)
• 18-20 rate (£10.85): £10.85 × 37.5 × 52 = £21,157.50 per year (about £1,763 per month)
• Under 18 / apprentice rate (£8.00): £8.00 × 37.5 × 52 = £15,600 per year (about £1,300 per month)

Remember that these are gross figures. After Income Tax (Personal Allowance of £12,570) and National Insurance, your take-home pay will be lower. Also, if your contract uses different hours (e.g., 40 hours per week), adjust the calculation accordingly. Our Hourly to Salary tool can do this for you with any hours.

How the Minimum Wage Compares to UK Median Earnings

The minimum wage is a floor, but most full-time workers earn more. The ONS Annual Survey of Hours and Earnings (ASHE) for April 2025 shows:

• Median full-time weekly earnings: £766.60
• Median full-time annual earnings (for those in job at least a year): £39,039
• Median full-time hourly earnings (excluding overtime): £19.67

At £19.67 per hour, the median worker earns about 55% more than the National Living Wage. If you are earning at or near the minimum wage, you are in the bottom 10% of earners. The ONS also notes that low-paid occupations saw strong hourly pay increases in 2025, often matching or exceeding the National Living Wage rise.

Important Caveats When Converting Hourly to Annual Pay

• Hours assumption: The conversion above assumes a steady 37.5-hour week with no unpaid overtime. If you regularly work extra hours, your actual annual pay will be higher, but overtime may be paid at a different rate.
• Holiday pay: Statutory holiday entitlement is 5.6 weeks per year (including bank holidays). If your hourly rate already includes rolled-up holiday pay, the calculation changes.
• London weighting: Some employers in London add a geographical supplement. This is not reflected in the national minimum wage figures.
• Salary sacrifice: If you sacrifice part of your salary for benefits (e.g., pension, cycle to work), your taxable pay reduces but your contractual hourly rate may stay the same.
• Apprentice rules: An apprentice aged 21 in their first year is entitled to the apprentice rate (£8.00), not the NLW. After the first year, they must be paid the NLW (£12.71).

Always check your employment contract and official guidance from GOV.UK. For more context on UK pay levels, see our salary data page and salary articles.

Why the Minimum Wage Matters for Job Seekers

Knowing "what's minimum wage uk" helps you evaluate job offers. If an employer offers you an hourly rate below the legal minimum for your age, that is unlawful. Use the government's minimum wage calculator to check. Also, remember that the National Living Wage is a target: the government aims for it to reach two-thirds of median hourly earnings over time. For 2027, the Low Pay Commission has indicated that further increases will be needed to maintain that ratio.

Whether you are negotiating a new role or checking your current pay, converting hourly rates to annual figures gives you a clearer picture of your total compensation. Use our Hourly to Salary page for quick conversions and to compare against UK benchmarks.