When Is Minimum Wage Going Up? A Guide to Hourly, Weekly and Annual Pay in 2026

When Is Minimum Wage Going Up? Understanding the 2026 Increases

If you’re asking “when is minimum wage going up”, the answer is clear: the new rates take effect on 1 April 2026. The government has accepted the Low Pay Commission’s recommendations, meaning the National Living Wage (for workers aged 21 and over) will rise to £12.71 per hour, while the 18–20 rate goes to £10.85 and the under-18 and apprentice rates both increase to £8.00 per hour. These changes are designed to keep the minimum wage in line with rising living costs and median earnings.

But knowing the hourly rate is only part of the picture. To plan your finances, you need to understand how that hourly figure translates into weekly and annual pay – and, crucially, what you’ll actually take home after deductions. This guide breaks down the numbers and explains the difference between statutory rates, advertised salaries, and your net pay.

Hourly Rates: The Legal Minimum

The statutory minimum wage depends on your age and whether you are an apprentice. From April 2026, the rates are:

• National Living Wage (21 and over): £12.71 per hour (up 50p, a 4.1% increase)
• 18–20 Year Old Rate: £10.85 per hour (up 85p, an 8.5% increase)
• Under 18 Rate: £8.00 per hour (up 45p, a 6% increase)
• Apprentice Rate: £8.00 per hour (up 45p, a 6% increase) – applies to apprentices under 19 or in the first year of their apprenticeship

These rates are legally binding. Your employer must pay you at least the rate for your age group. If you are an apprentice aged 21 who has completed the first year, you are entitled to the full National Living Wage of £12.71.

From Hourly to Weekly and Annual Pay

To see what these hourly rates mean in practice, consider a full-time worker on the National Living Wage. A standard full-time week is often 37.5 hours, though some contracts use 35 or 40 hours. At £12.71 per hour for 37.5 hours, the gross weekly pay is:

• £12.71 × 37.5 = £476.63 per week

Over a year (52 weeks), that gives an annual gross salary of about £24,785. The Low Pay Commission notes that for an NLW worker on 37.5 hours, the April 2026 increase adds £977 to annual gross pay (or £81.47 per month).

But remember: this is gross pay – before any deductions. Your take-home pay will be lower once income tax, National Insurance, and pension contributions are taken off. Use a take-home pay calculator to get a more accurate figure for your circumstances.

Advertised Salaries vs. Statutory Minimum

When you see a job advert, the salary quoted is usually a gross annual figure. It may be significantly higher than the statutory minimum, especially for skilled roles or in sectors like healthcare, construction, or IT. For example, the NHS Agenda for Change pay scales start above the minimum wage for most roles. Similarly, many employers in retail and hospitality offer rates above the legal floor to attract staff.

Always check the advertised salary against the minimum wage for your age and hours. A job offering £22,000 per year for 40 hours a week works out at about £10.58 per hour – which would be below the National Living Wage for someone aged 21 or over. In that case, the employer would be breaking the law. If you are unsure, use the government’s minimum wage calculator or consult your union.

Take-Home Pay: What You Actually Receive

Your take-home pay is what lands in your bank account after deductions. The main deductions are:

• Income Tax: You have a personal allowance (currently £12,570 per year) before you start paying tax. Above that, you pay 20% on earnings up to £50,270.
• National Insurance: Class 1 contributions are 8% on earnings between the primary threshold and the upper earnings limit (roughly £242 to £967 per week in 2025/26).
• Pension contributions: If you are enrolled in a workplace pension, you typically contribute at least 5% of your qualifying earnings (your employer adds 3%).

For a full-time NLW worker earning £24,785 per year, the take-home pay after tax, NI, and a 5% pension contribution would be around £1,600 per month – but this varies depending on your exact circumstances. Always check your payslip to see the deductions.

Why the Increase Matters

The 2026 rise continues the government’s ambition to make the National Living Wage worth at least two-thirds of median earnings. The Low Pay Commission’s report states that the increase will provide a real-terms pay rise for low-paid workers, protecting their living standards against inflation. The 18–20 rate is also moving closer to the NLW, with a path to full alignment by 2028 or 2029.

If you are a job seeker or worker, knowing “when is minimum wage going up” helps you plan ahead. The April increase is a guaranteed uplift for millions of workers. But don’t forget that many employers pay more than the minimum – especially in sectors with labour shortages. Use our pay guides to compare typical salaries in your industry, and check the pay data for regional averages.

Frequently Asked Questions

When is the minimum wage going up in 2026?

The new rates take effect on 1 April 2026. The National Living Wage for workers aged 21 and over rises to £12.71 per hour, the 18–20 rate goes to £10.85, and the under-18 and apprentice rates both increase to £8.00 per hour. These changes follow recommendations from the Low Pay Commission, which the government accepted in full.

How does the hourly minimum wage translate into weekly or annual pay?

For a full-time worker on the National Living Wage working 37.5 hours per week, the gross weekly pay would be about £476.63 (£12.71 × 37.5). Annual gross pay would be roughly £24,785. However, actual take-home pay will be less after deductions for tax, National Insurance, and pension contributions. Many employers offer salaries above the legal minimum, so always check your contract.

Are advertised salaries the same as the statutory minimum wage?

No. Advertised salaries often exceed the statutory minimum, especially for skilled roles or in sectors with labour shortages. The statutory rates are the legal floor – employers cannot pay less. When comparing job offers, look at the gross annual salary and consider how many hours you are expected to work. The National Living Wage and National Minimum Wage are hourly rates, so a job advertised at £25,000 per year may be above or below the minimum depending on your hours.

Final Thoughts

Understanding the difference between hourly rates, weekly pay, annual salary, and take-home pay is essential for making informed career decisions. The April 2026 increase gives a clear answer to “when is minimum wage going up” – but the real value depends on your personal circumstances. Always check your payslip, use official calculators, and if you think you are being underpaid, speak to your employer or seek advice from Acas. For more information, visit our UK Minimum Wage page or explore our topics section.