18 Minimum Wage 2026/27: Gross Pay, Take-Home and What You Actually Earn After Tax

Understanding the 18 Minimum Wage in 2026/27

The UK government sets two main minimum wage rates: the National Living Wage (for workers aged 21 and over) and the National Minimum Wage (for younger workers). For 18-20 year olds, the 18 minimum wage from April 2026 is £10.85 per hour, an 8.5% increase from the previous £10.00. This rate is set by GOV.UK following recommendations from the Low Pay Commission.

If you are 18 and working full-time (say 37.5 hours per week), your annual gross salary would be:

£10.85 × 37.5 × 52 = £21,158

This is below the UK median full-time salary of around £39,039 (ONS ASHE 2024), reflecting that minimum wage roles are typically entry-level or part-time.

Gross vs Net: What You Actually Take Home

Your take-home pay is what lands in your bank account after deductions. For a single person with no pension or student loan, the main deductions are:

• Income Tax: You have a Personal Allowance of £12,570 (tax-free). The remaining £8,588 is taxed at 20% = £1,718 per year.
• National Insurance: Employee NI is 8% on earnings above the primary threshold of £12,570, up to £50,270. On £21,158, that’s 8% of £8,588 = £687 per year.

So annual take-home = £21,158 – £1,718 – £687 = £18,753.

Monthly, that’s about £1,563 (or £361 per week).

If you work fewer hours, your gross and net will be proportionally lower. For example, a 20-hour week on £10.85 gives annual gross of £11,284, which is below the Personal Allowance, so you’d pay no Income Tax and no NI – you keep almost everything.

What About Pension and Student Loans?

• Pension: Auto-enrolment workplace pensions apply from age 22. If you are 18-21, you are not automatically enrolled but can opt in. If you do contribute, say 5% of qualifying earnings, your take-home reduces by roughly that amount (though your employer also contributes).
• Student Loan: Most student loan plans have repayment thresholds above £21,158 (Plan 1: £26,900, Plan 2: £29,385, Plan 4: £33,795). Only Plan 5 (£25,000) and Postgraduate Loan (£21,000) could apply. If you have a Postgraduate Loan, you’d repay 6% of earnings above £21,000 – that’s 6% of £158 = about £9.48 per year, negligible. Plan 5 would not apply at this salary.

Scotland vs Rest of UK

If you live in Scotland, Income Tax bands differ slightly. Scotland has a 19% starter rate on the first £3,967 of taxable income, then 20% on the next band. For a salary of £21,158, this results in about £40 less tax per year, so take-home would be around £18,793 annually (£1,566 per month). National Insurance is the same across the UK.

Other Minimum Wage Rates for Younger Workers

• Under 18: £8.00 per hour. Full-time (37.5 hrs) gives £15,600 gross. After tax and NI (only on earnings above £12,570), take-home is about £14,752 per year (£1,229 per month). Note: NI only applies from age 16.
• Apprentice: Also £8.00 per hour, for apprentices under 19 or in the first year of their apprenticeship. Same take-home as under-18.

Why the 18 Minimum Wage Matters

The 18 minimum wage is a crucial floor for young workers entering the job market. It ensures a baseline income, but the gap between gross and net is relatively small because the Personal Allowance covers a large chunk. As you gain experience and move to higher-paid roles, deductions increase proportionally.

For more detailed calculations, use our take-home calculator to see your exact net pay with your specific hours, pension, and student loan. You can also browse our salary articles for guides on tax codes and deductions.

Key Takeaways

• 18 minimum wage 2026/27: £10.85 per hour.
• Full-time annual gross: £21,158.
• Typical monthly take-home: £1,563 (tax and NI only).
• No student loan repayment unless you have a Postgraduate Loan.
• Pension contributions are optional for under-22s.
• Scottish residents get slightly higher take-home due to different tax bands.

Always check your payslip and refer to official HMRC and GOV.UK guidance for the latest rates. Your actual take-home may vary based on your tax code, benefits in kind, and other deductions.