How Much Is the Minimum Wage in 2026/27? Take-Home Pay After Tax and NI

How Much Is the Minimum Wage in 2026/27?

If you're wondering how much is the minimum wage for the 2026/27 tax year, the answer depends on your age and whether you're an apprentice. From April 2026, the National Living Wage (NLW) for workers aged 21 and over rises to £12.71 per hour – a 4.1% increase on the previous £12.21. Workers aged 18 to 20 must be paid at least £10.85 per hour, and those aged 16 to 17 and apprentices at least £8.00 per hour. These rates are set by the government and are legal minimums; employers cannot pay below them.

But the headline hourly rate is only part of the story. What really matters is how much ends up in your bank account after deductions. This article breaks down the gross salary, Income Tax, National Insurance, and other common deductions for a minimum‑wage worker, so you can see exactly what you'll take home.

Gross Salary on the National Living Wage

For a full‑time worker on the NLW, the standard working week is often 37.5 hours. Multiply that by 52 weeks and you get a gross annual salary of approximately £24,785 (£12.71 × 37.5 × 52). If you work 40 hours a week, the gross rises to about £26,437. These figures are before any tax or other deductions.

Income Tax and National Insurance

In the 2026/27 tax year, the Personal Allowance (the amount you can earn before paying Income Tax) is £12,570. For a worker earning £24,785, the taxable income is £24,785 – £12,570 = £12,215. This falls within the basic rate band, so Income Tax is 20% of that: £2,443.

Employee National Insurance is charged at 8% on earnings above the primary threshold of £12,570. On the same £12,215 of taxable earnings, NI comes to £977.

So, after Income Tax and NI, a full‑time NLW worker in England, Wales and Northern Ireland takes home £21,364 per year – that's about £1,780 per month or £410.85 per week. On an hourly basis, that works out at £10.96 net per hour.

Scotland: Slightly Higher Take‑Home

Scotland sets its own Income Tax bands and rates. For 2026/27, the starter rate is 19% on the first £3,967 of taxable income, rather than 20%. This means a worker on the NLW pays about £40 less in Income Tax, giving a take‑home of £21,404 per year (£1,784 per month). National Insurance is the same across the UK.

Pension Contributions and Student Loans

Many workers are automatically enrolled into a workplace pension. The default contribution is 5% of qualifying earnings (with the employer adding at least 3%). If you opt in, your take‑home pay reduces. For a rUK worker on the NLW, a 5% pension contribution brings take‑home down to about £20,623 per year.

Student loan repayments are less common at NLW earnings. Most plans (Plan 1, 2, 4) have thresholds above £26,900, so no repayment is due. However, Plan 5 has a threshold of £25,000 – if you work 40 hours a week, you'd repay 9% of the excess, about £129 a year. The Postgraduate Loan threshold is £21,000, so 6% of earnings above that would apply.

Comparing with the UK Median Salary

For context, the UK median full‑time gross annual pay is around £39,039 (2026/27 estimate). A minimum‑wage worker earns about 63% of that median. After tax and NI, the median worker takes home roughly £2,636 per month, compared to £1,780 for the NLW worker. The gap narrows slightly when you consider that minimum‑wage workers are less likely to have student loan deductions.

Using the Take‑Home Calculator

To see your own take‑home pay with your exact hours, pension, and student loan plan, try our take‑home calculator. It uses the latest 2026/27 tax bands and can handle Scottish rates, different pension contributions, and multiple student loan plans.

For more articles on salary and deductions, visit our salary articles section.

Summary

• National Living Wage (21+): £12.71/hour, gross £24,785/year (37.5 hrs/week).
• Take‑home (rUK): £21,364/year (£1,780/month).
• Take‑home (Scotland): £21,404/year (£1,784/month).
• With 5% pension: £20,623/year (rUK).
• Student loans: Generally no repayment except Plan 5 (at 40 hrs) or Postgraduate Loan.

Remember, these figures are estimates for a single person with the standard Personal Allowance and no other deductions. Your actual take‑home pay may differ depending on your tax code, benefits in kind, and other factors. Always check your payslip and official GOV.UK guidance.

Sources

• GOV.UK National Living Wage rates for 2026/27.
• HMRC Income Tax and National Insurance thresholds for 2026/27.
• ONS ASHE data for median earnings (2025 provisional).