What is the new minimum wage 2026? Take-home pay vs advertised rates explained

What is the new minimum wage 2026?

If you are wondering what is the new minimum wage 2026, the answer depends on your age and whether you are an apprentice. From 1 April 2026, the statutory rates set by the UK Government are:

• National Living Wage (21 and over): £12.71 per hour (up 50p, 4.1%)
• 18-20 year old rate: £10.85 per hour (up 85p, 8.5%)
• 16-17 year old rate: £8.00 per hour (up 45p, 6%)
• Apprentice rate: £8.00 per hour (up 45p, 6%)

These rates were recommended by the Low Pay Commission and accepted in full by the Government. The accommodation offset – the maximum daily amount employers can count towards the minimum wage if they provide housing – also rises to £11.10 per day.

For a full breakdown of who qualifies for each rate, see our UK Minimum Wage page.

Advertised salary vs take-home pay

When you see a job advert quoting an annual salary, it is usually based on a 35- or 40-hour week at the hourly rate. But your actual take-home pay will be lower after deductions for income tax, National Insurance, pension contributions, and possibly student loan repayments. The new minimum wage rates are a legal floor, not a guarantee of what you will receive in your bank account each month.

For example, a full-time worker on the National Living Wage (35 hours per week) would earn a gross annual salary of approximately £23,120. After tax and NI, the take-home pay would be around £1,700 per month, depending on your tax code and any pension deductions. If you are eligible for Universal Credit, your total income may be higher because of the above-inflation increase to the standard allowance announced alongside the minimum wage rise.

How the Low Pay Commission’s analysis affects your income

The Low Pay Commission’s report on the 2026 minimum wage explains that the impact on household incomes varies significantly. A single person working full-time on the NLW will see a 3.3% increase in weekly take-home pay (about £11.90), because they start paying tax and National Insurance once they work more than 20 hours per week. In contrast, a couple with two school-aged children where only one person works will receive at least a 4.2% increase, as they remain eligible for Universal Credit regardless of hours worked.

This means that what is the new minimum wage 2026 in terms of your actual spending power depends on your personal circumstances. The Government’s remit to the Low Pay Commission asked it to consider the cost of living, and the Commission expects the NLW to represent a real-terms increase over the period to April 2027. However, frozen tax thresholds mean that some workers will face a slightly higher average tax rate, reducing the net benefit.

Age bands and the path to a single adult rate

The Government has stated its ambition to eventually reduce the NLW age threshold from 21 to 18, following the Low Pay Commission’s own advice. The 18-20 rate is now at 85% of the NLW, up from previous years. For now, workers aged 20 and under are entitled to lower rates, reflecting their generally lower average earnings and higher unemployment risks. Apprentices also have a separate rate, but only during their first year or if they are under 19.

If you are an apprentice aged 21 who has completed the first year, you must be paid the full National Living Wage of £12.71. If you are an apprentice aged 18-20 after the first year, you move to the 18-20 rate of £10.85.

Practical steps to check your pay

• Use the official minimum wage calculator on GOV.UK to check whether your employer is paying you correctly.
• Compare your hourly rate to the statutory rates above. Remember that tips, service charges, and some bonuses cannot be counted towards the minimum wage.
• If you think you are being underpaid, contact Acas for advice.
• For more detailed guidance on salary negotiations and pay scales, visit our pay guides section.

The bigger picture: coverage and compliance

The Low Pay Commission projects that around 1.7 million jobs will be paid at or just above the National Living Wage in April 2026, representing about 5.9% of all jobs. This is a slight fall from the previous year, partly because wage growth in the wider economy has been stronger than forecast. Employers are legally required to pay at least the minimum wage, and HMRC can issue penalties for non-compliance.

Remember that the statutory minimum wage is different from the voluntary Living Wage calculated by the Living Wage Foundation. Some employers choose to pay the higher voluntary rate, which is currently higher than the NLW in both the UK and London. Check your contract and ask your employer which rate they use.

For more data on average earnings and pay trends, see our pay data page.

Summary

What is the new minimum wage 2026? It is £12.71 for workers aged 21 and over, £10.85 for 18-20 year olds, and £8.00 for under-18s and apprentices. But your take-home pay will depend on your hours, tax situation, and any benefits you receive. Always check your payslip and use the official calculator to ensure you are being paid correctly.