What is the minimum wage in the UK in 2026?

The National Living Wage (for workers 21+) is set by the government and increases each April. Check gov.uk for current rates as they change annually. There are lower rates for younger workers and apprentices. The minimum wage is a legal requirement — employers must pay at least this amount.

What's the difference between National Minimum Wage and National Living Wage?

They're both legally required minimum pay rates set by the government. The National Living Wage applies to workers aged 21 and over, and is higher. The National Minimum Wage applies to younger workers (under 21) and has lower rates. Both are different from the voluntary 'Real Living Wage' set by the Living Wage Foundation.

Can my employer pay me below minimum wage?

No — it's illegal for employers to pay below the minimum wage. However, there are some exceptions: apprentices in their first year, some self-employed workers, family members living in the employer's home, and volunteers. If you think you're being underpaid illegally, you can report it to HMRC.

Does holiday pay count towards minimum wage?

No — holiday pay is separate from your regular pay and doesn't count towards minimum wage calculations. You must receive at least minimum wage for hours worked, PLUS statutory holiday entitlement (28 days for full-time workers). Your employer cannot include holiday pay in your hourly rate.

UK Minimum Wage and National Living Wage 2026 — Current Rates and Rules | PocketWise

Everyone deserves fair pay for their work. Here’s what you need to know about UK minimum wage rates, rules, and your rights.

Current Minimum Wage Rates

Rates typically change each April — check gov.uk for the most current figures

2025/26 Rates (From April 2025)

Age/Category	Hourly Rate
National Living Wage (21+)	Check current rate
18-20	Check current rate
Under 18	Check current rate
Apprentice	Check current rate

Always check gov.uk for the current rates as they change annually.

Historical Rate Increases

Year	National Living Wage (21+)	18-20	Under 18
April 2024	£11.44	£8.60	£6.40
April 2023	£10.42	£7.49	£5.28
April 2022	£9.50	£6.83	£4.81
April 2021	£8.91	£6.56	£4.62
April 2020	£8.72	£6.45	£4.55

Rates have increased significantly over recent years, generally outpacing inflation.

Who Gets Which Rate?

By Age

Your Age	You Get
21+	National Living Wage (highest)
18-20	National Minimum Wage (lower rate)
Under 18 (not apprentice)	National Minimum Wage (youth rate)
Apprentice (first year)	Apprentice rate (lowest)

Apprentice Rate Rules

You get the apprentice rate if:

You’re an apprentice under 19, OR
You’re 19+ and in the first year of apprenticeship

After the first year (or if you’re 19+ and past year one), you get the rate for your age.

When Your Rate Changes

Situation	New Rate Applies
Turn 18	From first pay day after birthday
Turn 21	From first pay day after birthday
Complete apprentice year 1	From first pay day after anniversary
Annual April increase	From first pay day on/after 1 April

Types of “Living Wage”

There are three different things called “living wage” — don’t confuse them:

1. National Living Wage (Government)

Feature	Details
Set by	UK Government
Legal status	Mandatory — employers must pay
Applies to	Workers 21+
Enforced by	HMRC

2. National Minimum Wage (Government)

Feature	Details
Set by	UK Government
Legal status	Mandatory — employers must pay
Applies to	Workers under 21 + apprentices
Enforced by	HMRC

3. Real Living Wage (Voluntary)

Feature	Details
Set by	Living Wage Foundation (charity)
Legal status	Voluntary — encouragement only
Rates	Higher than government rates
London rate	Higher again

The voluntary Real Living Wage is calculated based on what people need to live — it’s higher than the legal minimum. Employers displaying the “Living Wage Employer” logo pay this voluntarily.

Voluntary vs Mandatory Comparison

Type	UK Rate	London Rate	Legal?
National Living Wage	~ £11-12/hr	Same	Yes
Real Living Wage	~ £12/hr	~ £13/hr	No (voluntary)

Calculating Your Pay

Are You Getting Minimum Wage?

Step	Calculation
1	Total pay in pay period (before tax)
2	Minus: tips, premium pay, benefits in kind
3	Divide by hours worked
4	Compare to minimum wage for your age

What Counts as Pay

Counts ✅	Doesn’t Count ❌
Basic hourly/weekly pay	Tips from customers
Incentive pay	Premium for overtime
Performance bonuses	Expenses
Commission	Benefits in kind
	Premium for unsocial hours
	Pension contributions

Common Situations

Scenario	How It Works
Salaried employee	Salary ÷ contracted hours
Variable hours	Pay ÷ actual hours worked
Piece work	Must average at least min wage
Sleep-ins	Complex — depends on work required

What Counts as Working Time

Time That Must Be Paid

Activity	Must Be Paid?
Regular work duties	✅ Yes
Compulsory training	✅ Yes
Travel between work sites	✅ Yes
Waiting to be given work/at workplace	✅ Yes
On-call at workplace	✅ Yes
Security searches (compulsory)	✅ Yes

Time That May Not Be Paid

Activity	Must Be Paid?
Travel to/from work	❌ No
Lunch breaks	❌ No (if not working)
On-call at home	❌ No (unless called in)
Voluntary training	❌ No

Deductions and Minimum Wage

What Employers Can Deduct

Type	Can Reduce Below MW?
Income tax	Yes (legal requirement)
National Insurance	Yes (legal requirement)
Pension contributions (auto-enrolment)	Yes
Court orders	Yes
Agreed in contract (e.g., loans)	No — can’t take below MW
Uniform/equipment	No — can’t take below MW
Till shortages	No — can’t take below MW

Uniform and Equipment

If your employer requires specific uniform or equipment:

They can require you to buy it
But your pay after deduction must still be at least minimum wage
Many employers provide uniforms free to avoid this issue

Your Rights

Zero-Hour Contracts

Right	Details
Minimum wage	Must receive for all hours worked
Not required to accept hours	Can say no without penalty
Exclusivity banned	Can work for others
Notice of shifts	Required in some cases

Part-Time Workers

Right	Details
Same hourly rate	As comparable full-time workers
Minimum wage protection	Same as all workers
Pro-rata benefits	Holiday, pension, etc.

Agency Workers

Right	Details
Minimum wage	Someone must pay it (agency or hirer)
After 12 weeks	Equal treatment rights

If You’re Being Underpaid

Step 1: Check Your Pay

Check	How
Your age on pay day	Determines which rate
Hours worked	Check timesheets/records
Deductions	Are they legitimate?
Pay received	Total before tax

Use the government’s Minimum Wage Calculator to check.

Step 2: Raise It With Employer

Approach	Script
Informal first	“I’ve calculated my pay and it seems below minimum wage — can we check this?”
Be factual	Show your calculations
Keep records	Document conversations

Step 3: Formal Complaint

If informal doesn’t work:

Action	How
Written grievance	Use company grievance procedure
Acas advice	Free, confidential advice
HMRC complaint	They investigate employers
Employment tribunal	For unpaid wages

Reporting to HMRC

What Happens	Details
Anonymous reporting	You can report anonymously
Investigation	HMRC investigates employer
Arrears paid	Employer ordered to pay back wages
Penalties	Employers face fines
Naming and shaming	Public list of offenders

Report online at gov.uk or call the Acas helpline.

Exempt Workers

Some workers are not entitled to minimum wage:

Category	Why Exempt
Self-employed	Not employees (but check status)
Company directors	Unless also employees
Volunteers	Genuine volunteers only
Unpaid family workers	Living in employer’s home
Armed forces	Separate pay scales
Prisoners
Students on work placements (under 1 year)	Part of education

Warning: Some employers wrongly classify people as self-employed or volunteers. If you’re told you’re not entitled but work regular hours with set duties, check your status.

Minimum Wage Annual Earnings

Full-Time (37.5 hours/week) Take-Home

At Rate	Gross Annual	Monthly Take-Home*
£11.44/hr	£22,308	~£1,700
£12.00/hr	£23,400	~£1,760
£13.00/hr	£25,350	~£1,870

Approximate after tax/NI, no student loan

Hours Needed for Different Incomes

Target Monthly Net	Hours at NLW
£1,500	~32 hours/week
£1,750	~38 hours/week
£2,000	~45 hours/week

Beyond Minimum Wage

Moving Up

Strategy	How
Gain experience	Time in role builds value
Get training/qualifications	Increases earning potential
Ask for raises	How to negotiate
Move to higher-paying sector	Some sectors pay more
Look for Living Wage employers	Voluntary higher pay

Sectors That Typically Pay Above Minimum

Higher Paying	Lower Paying
Finance	Hospitality
Tech	Retail
Healthcare (qualified)	Care work
Construction (skilled)	Agriculture
Professional services	Cleaning

Useful Resources

Resource	What It Does
gov.uk minimum wage	Official rates and calculator
Acas	Free employment advice
Citizens Advice	Rights information
Living Wage Foundation	Voluntary scheme info
HMRC	Report underpayment

Key Takeaways

Point	Remember
Minimum wage is law	Employers must pay it
Rate depends on age	Check you’re on correct rate
Changes in April	Check for annual increases
Tips don’t count	Must be paid on top
Can’t deduct below MW	For things like uniforms
You can report anonymously	HMRC investigates

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