UK Minimum Wage 2026/27: £12.71 NLW, Rates & Take-Home Pay

The headline numbers

On 1 April 2026, the National Living Wage for workers aged 21 and over rose by 4.1% to £12.71 per hour, up from £12.21. Around 2.7 million workers are expected to benefit directly. Younger workers and apprentices received above-inflation rises too — the 18–20 band is up 8.5% to £10.85 as part of a gradual policy move to align it with the adult rate.

Full rates table (from 1 April 2026)

The Apprentice Rate applies to apprentices aged under 19, and to apprentices aged 19 or over who are in the first year of their apprenticeship. All other apprentices must be paid the rate for their age band. The Accommodation Offset is the maximum daily amount an employer can deduct from wages for provided accommodation while still meeting minimum wage rules.

What the new NLW looks like in annual terms

Here's what each new rate works out to over a year, and what a full-time worker actually takes home after income tax and National Insurance. We assume a 37.5-hour week × 52 weeks, standard 1257L tax code, no pension and no student loan.

How tax hits a minimum wage salary

A full-time worker on the 2026/27 National Living Wage earns £24,784.50 gross. Here's where that money goes:

That works out to about £1,780/month net (before any workplace pension opt-in). Because the Personal Allowance is frozen at £12,570, every future NLW rise creates slightly more tax liability — a form of fiscal drag even at the bottom of the pay scale. For a breakdown of all the 2026/27 tax changes see our UK Tax Changes 2026/27 guide.

National Living Wage vs Real Living Wage

The National Living Wage is the legal minimum for workers aged 21+, set by Parliament and enforced by HMRC. The Real Living Wage is a voluntary higher rate calculated by the Living Wage Foundation based on the actual cost of living, with separate rates for London and the rest of the UK. Over 14,000 UK employers choose to pay the Real Living Wage as an accredited Living Wage Employer.

What counts as working time (and what doesn't)

One of the most common causes of minimum wage underpayment is employers failing to pay for time that legally counts as work. All of the following must be paid at least at minimum wage rates:

• Time spent travelling between job sites during the working day (not your commute to and from home)
• Mandatory training during working hours
• Time spent opening up or closing down (cashing up, locking up, restocking)
• Compulsory meetings or briefings
• Time "on call" at the workplace, even if you're not actively working
• Uniform changing time if it's compulsory to change on-site

Unpaid trial shifts beyond a short observation period are almost always unlawful under minimum wage rules. If you're asked to do more than a brief observation unpaid, that's a red flag.

How to check you're being paid correctly

1. Work out your effective hourly rate. Divide your gross pay for the period by the total hours you actually worked in that period (including any unpaid overtime and legally-counted working time).
2. Compare to the rate for your age. Use the table above. If you turn 21 mid-pay-period, you move to the NLW from your next pay reference period.
3. Check deductions. Employers can't deduct money for tools, uniforms, training or till shortages if it would take your pay below the legal minimum. The Accommodation Offset is the only deduction allowed to count towards minimum wage.
4. Raise it in writing. If you think you're being underpaid, write to your employer asking them to explain and correct the underpayment, including any arrears.
5. Escalate if needed. Contact ACAS on 0300 123 1100 for confidential advice, or report your employer to HMRC using the online form at gov.uk/pay-and-work-rights-complaints. You can claim up to 6 years of underpayment back.

Frequently Asked Questions