Understanding the 2026 National Living Wage and National Minimum Wage

If you're asking what's the minimum wage 2026, the answer depends on your age. From April 2026, the government has confirmed the following statutory rates:

• National Living Wage (21+): £12.71 per hour
• National Minimum Wage (18–20): £10.85 per hour
• National Minimum Wage (under-18s and apprentices): £8.00 per hour

These rates apply across the UK and are reviewed annually by the Low Pay Commission. The 2026 NLW represents a 4.1% increase on the 2025 rate of £12.21.

Hourly to Annual Salary Conversion

To see what £12.71 an hour means as a yearly salary, multiply by your contracted weekly hours and then by 52 weeks. Most full-time roles in the UK are based on 37.5 or 40 hours per week.

Hours per week	Weekly pay	Monthly pay	Annual salary
35	£444.85	£1,927.68	£23,132.20
37.5	£476.63	£2,065.38	£24,784.50
40	£508.40	£2,203.07	£26,436.80

These figures are gross – before deductions. After income tax (20% on earnings above £12,570) and National Insurance (8% on earnings above £12,570), a 37.5-hour NLW worker in England takes home roughly £21,364 a year, or about £1,780 a month.

For younger workers on £10.85 or £8.00 an hour, the annual equivalents are lower. At 37.5 hours, £10.85 gives £21,157.50 a year; £8.00 gives £15,600 a year.

How the Minimum Wage Compares to UK Median Earnings

The National Living Wage is a legal floor, but most full-time employees earn more. According to the ONS Annual Survey of Hours and Earnings (ASHE) for April 2025, the median gross annual earnings for full-time employees were £39,039, and median hourly earnings (excluding overtime) were £19.67. That means the NLW at £12.71 is about 35% below the median hourly rate.

Sectors like healthcare, education, and public services often have their own pay scales. For example, the NHS Agenda for Change bands for 2026/27 start at Band 1 (£12.92 per hour) – just 21p above the NLW – while Band 5 entry (newly qualified nurses) is £16.40 per hour. Teachers and police have separate pay structures.

Comparing Hourly Jobs with Salaried Offers

When you're choosing between an hourly job and a salaried role, it's important to compare like with like. A salaried position may include:

• Guaranteed minimum hours – hourly workers may have variable shifts.
• Paid holiday – most hourly workers receive statutory holiday pay (5.6 weeks), but salaried roles often include it in the annual figure.
• Overtime and unsocial hours – hourly jobs often pay extra for nights, weekends, and bank holidays. The NHS, for instance, pays +30% for night shifts and Saturdays, and +60% for Sundays.
• London weighting – jobs in and around London often include a High Cost Area Supplement (HCAS). For NHS staff, this ranges from 5% (fringe) to 20% (inner London). Private sector employers may offer similar allowances.

To make a fair comparison, convert a salaried offer to an hourly rate by dividing the annual salary by 52 weeks and then by your weekly hours. For example, a £30,000 salary at 37.5 hours works out at £15.38 per hour.

Tax and Take-Home Considerations

Your take-home pay depends on more than just the hourly rate. Key factors for 2026/27:

• Personal Allowance: £12,570 – no income tax on earnings below this.
• National Insurance primary threshold: £12,570 – 8% on earnings above this (for employees).
• Pension contributions: If you're enrolled in a workplace pension, your take-home will be lower, but you gain employer contributions.
• Student loan repayments: Plan 2 and Plan 5 loans deduct 9% above £27,295 (2026/27 thresholds may change).

For a full-time NLW worker on £24,784.50, the tax and NI deductions are relatively small because most of the earnings fall within the basic rate bands. But if you work overtime or have a second job, your marginal rate can increase.

Using Our Tools

To quickly see how any hourly rate converts to annual, monthly, or weekly pay, try our Hourly to Salary calculator. You can adjust hours per week and see the effect of tax and NI. For more UK salary benchmarks, visit our salary data page, which includes median earnings by region and industry.

Final Thoughts

Knowing what's the minimum wage 2026 is essential for job seekers and employees negotiating pay. The NLW of £12.71 an hour provides a baseline, but many employers offer more – especially in sectors with skills shortages. Always check your contract for guaranteed hours, overtime rates, and any location allowances. And remember: the best way to compare job offers is to convert everything to an hourly rate using the same weekly hours assumption.

For more articles on UK pay and employment, browse our salary articles.