When does the minimum wage go up?

If you're asking "when does the minimum wage go up", the answer is clear: the new rates take effect on 1 April 2026. This annual change follows recommendations from the Low Pay Commission and applies to all workers in the UK who are eligible for the National Minimum Wage (NMW) or National Living Wage (NLW).

The biggest headline is the NLW for workers aged 21 and over, which rises by 4.1% to £12.71 per hour. That's an increase of 50p from the previous rate of £12.21. For younger workers, the 18-20 rate jumps by 8.5% to £10.85, while the 16-17 and apprentice rates both go up by 6% to £8.00 per hour.

These figures come directly from GOV.UK National Living Wage rates and the Low Pay Commission's 2026 report. The government has stated that two-thirds of median hourly earnings remains the key reference point for future NLW rates, with projections for 2027 suggesting a range of £13.02 to £13.34.

New National Living Wage and National Minimum Wage rates

Here are the official rates from 1 April 2026, as published by GOV.UK:

• National Living Wage (21 and over): £12.71 per hour (up 4.1%)
• 18-20 Year Old Rate: £10.85 per hour (up 8.5%)
• 16-17 Year Old Rate: £8.00 per hour (up 6.0%)
• Apprentice Rate: £8.00 per hour (up 6.0%)
• Accommodation Offset: £11.10 per day (up 4.1%)

These increases are designed to keep the NLW ahead of the cost of living, providing a real-terms boost for low-paid workers. However, the Low Pay Commission notes that the actual impact on take-home pay depends on interactions with tax and benefits. For example, Universal Credit recipients may see a larger net gain because the standard allowance rises by 6.2%, while workers who only pay tax may face a smaller increase due to frozen tax thresholds.

Converting hourly rates to annual salary

Understanding your annual salary from an hourly rate is straightforward with a simple formula: annual salary ≈ hourly rate × contracted hours per week × 52 weeks.

For a typical full-time worker on 37.5 hours per week:

• NLW £12.71/hour: £12.71 × 37.5 × 52 = £24,784.50 per year
• 18-20 rate £10.85/hour: £10.85 × 37.5 × 52 = £21,157.50 per year
• Apprentice rate £8.00/hour: £8.00 × 37.5 × 52 = £15,600 per year

These are gross figures before Income Tax, National Insurance, pension contributions, and any other deductions. The current Personal Allowance is £12,570, so you'll pay tax on earnings above that threshold.

For comparison, the UK median full-time gross annual pay is around £39,039 (about £20.02 per hour at 37.5 hours), according to ONS ASHE data. That's well above the minimum wage, but many workers in sectors like retail, hospitality, and care are paid at or near the NLW.

Use our Hourly to Salary calculator to quickly convert any hourly rate to annual, monthly, and weekly figures.

NHS pay scales as a benchmark

The NHS pay scales for 2026/27 provide a useful benchmark for public sector roles. Published by NHS Employers, these rates are effective from 1 April 2026 and include High Cost Area Supplements (HCAS) for London and surrounding areas.

Key entry-level bands:

• Band 2 (e.g., healthcare assistant): £12.92 per hour (annual £31,066 including HCAS)
• Band 3 (e.g., senior healthcare assistant): £13.17 per hour entry, rising to £14.05
• Band 4 (e.g., assistant practitioner): £14.52 per hour entry, rising to £15.93
• Band 5 (e.g., newly qualified nurse): £16.40 per hour entry, rising to £19.97 at top of band
• Band 6 (e.g., specialist nurse): £20.44 per hour entry, rising to £24.61

With HCAS, London-based staff receive higher rates. For example, a Band 5 nurse at the top of the band earns £23.96 per hour including HCAS, compared to £19.97 without. This illustrates how location can significantly affect your pay.

Common myths about hourly pay and overtime

There are several misconceptions about hourly pay and overtime that can lead to confusion. Let's clear them up.

Myth 1: The minimum wage applies to your average hours, not each hour. Fact: The National Minimum Wage applies to every hour you work. If your employer pays you less than the minimum for any hour, that's illegal. Overtime hours must also be paid at least the minimum wage, though your contract may specify a higher overtime rate.

Myth 2: Converting hourly to annual salary is always accurate. Fact: The simple formula (hourly × hours × 52) assumes you work exactly the same hours every week with no unpaid breaks, no overtime, and no salary sacrifice. In reality, your actual annual earnings may differ due to shift patterns, bank holidays, or unpaid leave. Always check your contract for your guaranteed hours.

Myth 3: London weighting is part of the minimum wage. Fact: London weighting (or HCAS) is a separate allowance paid by some employers to cover higher living costs. It is not part of the statutory minimum wage. Your minimum wage entitlement is based on your basic hourly rate, before any location supplements.

Myth 4: The minimum wage increase automatically boosts your take-home pay by the same percentage. Fact: As the Low Pay Commission explains, the interaction with tax and benefits can reduce the net gain. For example, frozen tax thresholds mean that as your gross pay rises, you may move into a higher tax band or lose some means-tested benefits. Always look at your net pay, not just the headline rate.

What the 2027 projection means

The Low Pay Commission's remit for 2026 includes a projection that two-thirds of median hourly earnings for those aged 21 and over will be between £13.02 and £13.34 in October 2027, with a central estimate of £13.18. This suggests further increases ahead, though the exact rate will depend on economic conditions and the government's decision.

For now, the key date is 1 April 2026. If you're paid hourly, check that your employer applies the new rate from that date. If you're on a salary, your annual pay may need to be recalculated if your contracted hours are fixed.

For more detailed salary comparisons and conversion tools, explore our salary articles and salary data pages.

Final thoughts

Knowing when the minimum wage goes up is essential for budgeting and negotiating your pay. The 2026 increase to £12.71 per hour for workers aged 21 and over is a significant step, but remember that your actual take-home pay depends on many factors. Use the hourly-to-annual conversion formula as a starting point, and always verify your specific contract terms.

If you're job hunting or considering a change, understanding how your hourly rate translates into annual salary will help you compare offers more effectively. Bookmark our hourly calculator for quick conversions.