What's the Minimum Wage in the UK? A Guide to Take-Home Pay vs Advertised Salary

What's the Minimum Wage in the UK? Understanding Your Pay

If you're asking "what's the minimum wage" in the UK, the answer depends on your age, whether you're an apprentice, and the type of work you do. From April 2026, the Government has updated the statutory rates, and it's important to know not just the headline figure but also how it translates into your actual take-home pay. This guide explains the current minimum wage rates, who qualifies for each, and the difference between the advertised salary and what lands in your bank account.

The Statutory Minimum Rates from April 2026

The National Living Wage (NLW) for workers aged 21 and over rises to £12.71 per hour, a 4.1% increase from £12.21. This rate applies to all employees and workers, including those on zero-hours contracts. For 18 to 20 year olds, the National Minimum Wage (NMW) increases to £10.85 per hour (up 8.5%), and for under 18s it rises to £8.00 per hour (up 6%). Apprentices also receive £8.00 per hour, but only if they are under 19 or in the first year of their apprenticeship. After the first year, apprentices aged 21 or over must be paid the full NLW.

These rates are set out in the National Minimum Wage (Amendment) Regulations 2026 and apply across England, Wales, Scotland, and Northern Ireland. They come into effect from the first pay reference period beginning on or after 1 April 2026. Your employer must pay you at least these amounts for every hour you work, including overtime. If your employer provides accommodation, they can use an accommodation offset of up to £11.10 per day (or £77.70 per week) towards meeting the minimum wage, but your cash wage must still be at least the minimum after that offset.

For agricultural workers, separate minimum rates apply depending on your grade. For example, a Grade 2 agricultural worker must be paid at least £13.30 per hour from April 2026, while a Grade 5 agricultural manager receives £14.44 per hour. These rates are set by the Agricultural Wages Board and are higher than the general minimum wage.

Advertised Salary vs Take-Home Pay: What You Actually Receive

When you see a job advert quoting the minimum wage, it's showing the gross hourly rate – the amount before any deductions. Your take-home pay is what remains after income tax, National Insurance (NI), pension contributions, and any other deductions like student loan repayments or union fees. For example, a full-time worker on the NLW of £12.71 per hour working 35 hours a week would earn a gross weekly wage of £444.85. After deductions, their take-home pay would be lower, depending on their tax code and personal circumstances.

The Government's own analysis shows that a single person working full-time on the NLW would see a 3.3% increase in weekly take-home pay (about £11.90) after the April 2026 uplift, because tax thresholds remain frozen. In contrast, a couple with two children where one parent works full-time would see a larger increase of at least 4.2% because they also receive Universal Credit. This highlights how the interaction with the tax and benefits system affects your net income.

According to the ONS Average Weekly Earnings data, the median total pay for all employees is around £745 per week – significantly higher than the minimum wage, but many workers in sectors like retail, hospitality, and care are paid at or near the statutory minimum. If you're earning the minimum wage, it's worth checking whether you're entitled to any additional payments, such as overtime premiums, shift allowances, or tips.

Who Gets Which Rate?

The age bands are straightforward:

• 21 and over: National Living Wage £12.71/hr
• 18 to 20: National Minimum Wage £10.85/hr
• Under 18: National Minimum Wage £8.00/hr
• Apprentices: £8.00/hr (if under 19 or in first year of apprenticeship)

Note that the NLW now applies from age 21, not 23 as in previous years. The Government plans to eventually extend the NLW to all workers aged 18 and over, but for now the 18-20 rate remains lower. The 18-20 rate increased by 8.5% this year, bringing it to 85% of the NLW, as a step towards that goal.

If you are an apprentice aged 21 or over and have completed your first year, you are entitled to the full NLW of £12.71 per hour. Your employer must ensure you are paid correctly based on your age and apprenticeship stage.

How the Rates Affect Your Budget

The minimum wage increase is designed to keep pace with the cost of living, but your actual spending power depends on your household situation. The Government also increased the Universal Credit standard allowance by 6.2% in April 2026, which helps low-income households. However, because income tax thresholds are frozen, some workers will pay more tax as their wages rise, reducing the net benefit.

If you are paid the minimum wage, it's important to budget carefully. Use a take-home pay calculator to estimate your net monthly income. Also check whether you are entitled to any benefits, such as Housing Benefit, Council Tax Support, or Working Tax Credits (if you're not on Universal Credit). The UK Minimum Wage page has links to official calculators and guidance.

For more detailed advice on understanding your payslip and negotiating pay, see our pay guides which cover topics like overtime rights, holiday pay, and salary benchmarking.

Frequently Asked Questions

What is the difference between the National Living Wage and the National Minimum Wage? The National Living Wage (NLW) is the highest statutory minimum rate, currently £12.71 per hour for workers aged 21 and over. The National Minimum Wage (NMW) covers younger workers and apprentices at lower rates: £10.85 for 18-20 year olds, £8.00 for under 18s, and £8.00 for apprentices. Both are set by the Government and reviewed annually.

How does the accommodation offset affect my pay if my employer provides housing? If your employer provides living accommodation, they can count up to £11.10 per day (from April 2026) towards meeting the minimum wage. This means your cash wage can be reduced by that amount, but only if the accommodation is provided. The offset is a maximum; if your rent is lower, the offset is the actual amount. Always check your payslip to ensure you still receive at least the minimum wage after deductions.

Why is my take-home pay less than the advertised minimum wage rate? The advertised rate (e.g., £12.71 per hour) is your gross pay before deductions. Your take-home pay is lower because of income tax, National Insurance contributions, pension contributions (if you're enrolled), and possibly student loan repayments. Additionally, if you receive Universal Credit or other benefits, your net income may be affected. Use a take-home pay calculator to estimate your net earnings.