The National Minimum Wage is the minimum legal or statutory minimum amount per hour (£) a business can pay an employee in the UK. The UK government, advised by the independent Low Pay Commission (LPC), reviews this amount and adjusts the figure yearly. Typically, changes to the UK’s minimum wage take place on 1 April.
In this article, we’ll cover everything you need to know about the National Living Wage and National Minimum Wage for 2026.
Key Facts
- From 1 April 2026, the UK National Living Wage for workers aged 21 and over is £12.71 per hour.
- The government’s increase to the National Living Wage is expected to benefit millions of the UK’s lowest-paid workers.
- Despite the increase, a full-time worker on the National Living Wage will still earn over £1,400 less annually than someone on the voluntary real Living Wage.
- Ensuring correct pay is critical, as failure to comply can lead to significant financial penalties and public naming by HMRC.
The table below outlines the mandatory UK minimum and living wage rates from 1 April 2026, alongside the voluntary Real Living Wage rates.
| National Living Wage | 21 and over | £12.21 | £12.71 |
| National Minimum Wage | 18 to 20 | £10.00 | £10.85 |
| Under 18 | £7.55 | £8.00 | |
| Apprentice Rate | Apprentices under 19, or 19+ in first year | £7.55 | £8.00 |
| Real Living Wage (Voluntary) | UK Rate | £13.45 | £14.80 |
| London Rate | £13.85 | £14.80 | |
| Pay Rate Category | Age Group | Rate (April 2025 – March 2026) | Rate (From 1 April 2026) |
|---|
A table outlining the new minimum wage hourly rates and living wage hourly rates in the UK for 2026. Sources: GOV.UK and the Living Wage Foundation.
What is the National Minimum Wage?
The National Minimum Wage (NMW) is the statutory minimum hourly rate that workers under the age of 21 are entitled to if they are one of the following:
- Full-time worker.
- Part-time worker.
- Casual worker.
- Agency worker.
- Apprentice, in some instances. (See below for more on this)
The goal of minimum wages is to safeguard employees from unfairly low compensation.
As of 1 April 2026, the NMW rate is £10.85 per hour for those aged 18-20 and £8.00 per hour for workers under 18.
What is the National Living Wage?
The National Living Wage (NLW) is the statutory minimum hourly rate employers must pay workers aged 21 and over. The age threshold was lowered from 23 to 21 on 1 April 2024, expanding the number of employees entitled to this higher rate. From 1 April 2026, the National Living Wage is £12.71 per hour. This represents a 4.1% increase on the previous year’s rate, aiming to provide a real-terms pay rise for low-paid workers.
Who is Entitled to National Minimum Wage?
Although the national minimum wage rates are set by an hourly amount, it is not limited to employees that are paid per hour. The rate applies to all workers across the UK, including:
- Those working part-time or casually.
- Workers in training.
- Offshore workers.
The new 2026 rates are the same across Scotland, Northern Ireland, Wales and England and will come into effect on the same date everywhere.
There are a few groups of workers to whom these legal requirements do not apply. Self-employed workers, unpaid volunteers, company directors and members of family cohabiting with their employer are not entitled to the minimum wage.
What is the Minimum Apprentice Wage?
In order to be entitled to the minimum apprentice wage (£8.00 per hour from 1 April 2026), the apprentice must be either:
- Aged under 19.
- Aged 19 or over and in the first year of their apprenticeship.
However, apprentices that are both 19 or over and have completed the first year of their apprenticeship should not be held to the apprentice rate. In these instances, they would be entitled to the minimum wage for their age. For example, a 20 year old apprentice in the second year of their apprenticeship after April 2026 would be entitled to £10.85 an hour rather than the standard apprentice rate.
How Can You Calculate National Minimum Wage?
You can use an employees’ working hours to calculate their correct rate of pay. Working hours are defined by the government as time spent:
- At work and meant to be working.
- Training or travelling as part of your job.
- Working/business lunches.
- Working abroad as part of your job.
- Working excess hours (paid overtime or employer-requested unpaid overtime).
- Working on-call at your place of work.
- Any contractual ‘working time’.
- Commute travel time (only if your place of work is not fixed).
The government does not include:
- Non-working breaks.
- Time spent on non-work related calls.
- Standard commute between home and fixed workplace.
- Leave (holidays, sick leave or maternity leave).
- Time spent striking or on industrial action.
- Time spent at the workplace whilst not working or unavailable to work.
To pay wages accurately in line with legal requirements, you can use the government’s step-by-step guide to calculate the average hourly rate and the number of hours worked over a specific period. The government’s National Minimum Wage and Living Wage calculator for employers is another helpful tool to check you’re paying employees correctly and haven’t previously underpaid them.
What is the accommodation offset?
If an employer provides accommodation, they can count some of its value towards the National Minimum Wage or National Living Wage. This is known as the accommodation offset. From 1 April 2026, the maximum daily offset rate is £11.10. It is critical that employers do not deduct more than this amount from an employee’s wages for accommodation, as doing so could technically result in underpayment of the minimum wage.
What is the Real Living Wage and London Living Wage 2026?
There’s one more benchmark to consider. The voluntary Living Wage is independently decided by the Living Wage Foundation and is completely voluntary. Their core belief is that UK staff aged 18 or over deserve to be paid enough to cover their everyday living costs. For that reason, it’s calculated on a basket of household goods and services and is always higher than both the minimum and living wage.
Over 16,000 UK companies now take part in the scheme. The rates effective from April 2026 are £14.80 per hour for London and £13.45 per hour for the rest of the UK.
How Could Paying the Real Living Wage Benefit Your Company?
Although you are not legally required to do so, raising your employees’ wages to meet these benchmarks could benefit your company in multiple ways.Â
For starters, it will improve your profile as an employer and help you to attract top talent. A recent CareerWallet survey found that only 25% of all employees in the UK have not thought about changing roles or demanding a pay rise due to the rising cost of living. This speaks volumes about the growing importance the UK workforce is placing on salary. A more generous pay package will also positively impact your existing employees, in turn improving morale and reducing your turnover rate.
It doesn’t hurt you as an employer, either. Paying employees enough to get by rather than scrape by can only improve perceptions of your brand. A better brand reputation can boost customer loyalty and help you stand out to prospects. Â
Managing Time Tracking and Payroll All in One Place
To know whether your business is meeting minimum wage requirements, you must know the hours worked by your employees and their hourly rates. The easiest way to do this is by using time tracking software. Factorial’s all-in-one HR solution allows you to:
- Personalise work schedules for your employees.
- Compare their actual working hours vs expected.
- Track your employees’ working hours daily with clock-in and clock-out features.
- Approve or reject timesheets instantly.
- Pay extra hours easily.
- Monitor employee absence and attendance.
- Create custom time reports.
With Factorial, you can also digitalise and centralise all of your payroll-related processes using our payroll management software, making payroll painless. You can manage employee expenses and periodic compensations from the same place, too.
Combining time and payroll management with Factorial’s software will give you more visibility and flexibility, enabling you to keep up to date with legal wage requirements and pay your employees a fair salary.
FAQs about minimum wage in the UK
Will the National Minimum Wage go up in April 2026?
The UK government reviews minimum wage rates annually, with changes typically announced in the autumn for the following April. While an increase is likely in line with previous years, the official rates for April 2026 will not be confirmed until late 2025.
How much is 40 hours a week minimum wage?
From April 2025, the National Living Wage for workers aged 21 and over is £12.21 per hour. Based on this rate, a standard 40-hour working week would amount to a gross weekly pay of £488.40. Rates are lower for younger workers.
Is £12.60 an hour good?
An hourly rate of £12.60 is above the UK’s mandatory National Living Wage, which is £12.21 per hour from April 2025 for workers aged 21 and over. It also compares favourably to the voluntary Real Living Wage, which is calculated based on the actual cost of living.
