Minimum Wage 2026 Over 25: What You’ll Actually Take Home After Tax and NI

Minimum Wage 2026 Over 25: What You’ll Actually Take Home

If you’re searching for the minimum wage 2026 over 25 rate, the key figure is £12.71 per hour. From April 2026, the National Living Wage (NLW) applies to all workers aged 21 and over, not just those aged 25 and above. This page explains what that means for your gross pay, your take-home pay after Income Tax and National Insurance, and how regional differences (especially Scotland) affect your net income.

The 2026/27 National Living Wage Rate

GOV.UK confirms that the NLW rises to £12.71 per hour from 1 April 2026, an increase of 4.1% on the previous rate. The government’s Low Pay Commission recommended this increase to keep the minimum wage ahead of cost-of-living growth. For a full-time worker on a typical 37.5-hour week, the annual gross salary is:

• 37.5 hours/week: £12.71 × 37.5 × 52 = £24,784.50
• 40 hours/week: £12.71 × 40 × 52 = £26,436.80
• 35 hours/week: £12.71 × 35 × 52 = £23,132.20

These figures assume 52 paid weeks (holiday is paid at the same hourly rate). If you’re paid monthly, divide the annual amount by 12.

Take-Home Pay After Income Tax and National Insurance

Your take-home pay depends on your tax code and which part of the UK you live in. For England and Northern Ireland, the 2026/27 Income Tax bands are:

• Personal Allowance: £12,570 (tax-free)
• Basic rate (20%): £12,571 to £50,270
• Higher rate (40%): £50,271 to £125,140
• Additional rate (45%): above £125,140

Employee National Insurance (Class 1, category A) is charged at:

• 0% on earnings up to the primary threshold (£12,570)
• 8% on earnings between £12,570 and the upper earnings limit (£50,270)
• 2% on earnings above £50,270

Worked Example: 37.5 hours per week

	Weekly	Monthly	Annual
Gross pay	£476.63	£2,065.38	£24,784.50
Income tax (20% above £12,570)	£46.98	£203.58	£2,442.90
National Insurance (8% above £12,570)	£18.79	£81.43	£977.16
Take-home pay	£410.85	£1,780.37	£21,364.44

So on the minimum wage 2026 over 25 (actually 21+), a full-time worker takes home about £1,780 per month or £10.96 per hour after deductions.

If you work 40 hours, the take-home rises to roughly £1,880 per month. Use our take-home calculator to get a personalised estimate.

Scotland’s Different Income Tax Bands

Scotland sets its own Income Tax rates. For 2026/27, the bands are:

• Starter rate (19%): up to £3,967
• Basic rate (20%): £3,968 to £16,956
• Intermediate rate (21%): £16,957 to £31,092
• Higher rate (42%): £31,093 to £62,430
• Advanced rate (45%): £62,431 to £125,140
• Top rate (48%): above £125,140

For someone earning £24,784.50, the Scottish starter rate on the first £3,967 of taxable income means you pay 19% instead of 20% on that slice. This saves about £39.67 a year compared to England. So take-home in Scotland is roughly £1,783.68 per month – a small but welcome difference.

Student Loan Repayments

If you have a student loan, repayments start when your earnings exceed the threshold for your plan. For 2026/27:

• Plan 1: £26,900 per year
• Plan 2: £29,385 per year
• Plan 4: £33,795 per year
• Plan 5: £25,000 per year
• Postgraduate Loan: £21,000 per year

At the NLW rate of £12.71, most full-time workers earn below the Plan 1, 2, and 4 thresholds. However, if you work 40 hours (£26,436.80), you exceed the Plan 5 threshold (£25,000) and would repay 9% of the excess – about £129 a year, or £10.78 a month. Postgraduate Loan repayments (6% of earnings above £21,000) would apply at both 37.5 and 40 hours, adding a further deduction.

Pension Contributions

Many employers offer workplace pensions with automatic enrolment. If you contribute 5% of your salary (and your employer adds 3%), your take-home pay will be lower. For example, on £24,784.50, a 5% employee contribution is £1,239.22 a year, reducing take-home to about £20,125. This is still a good deal because you get employer contributions and tax relief.

How the Minimum Wage Compares to Median Pay

The UK median full-time gross annual pay is around £39,039 (ONS ASHE). The NLW at 37.5 hours is about £24,785 – roughly 63% of the median. This gap reflects the lower end of the labour market. For more context, see our salary articles on how different occupations compare.

Key Takeaways

• The minimum wage 2026 over 25 (now 21+) is £12.71 per hour.
• Full-time take-home pay is about £1,780 per month (England) or £1,784 per month (Scotland) at 37.5 hours.
• Frozen tax thresholds mean your effective tax rate rises slightly each year, even on the minimum wage.
• Student loan and pension deductions can reduce take-home further.
• Always check your payslip and use official GOV.UK guidance for your personal circumstances.

For a detailed breakdown of your own salary, try our take-home calculator or explore salary data for different regions and industries.

Frequently Asked Questions

What is the minimum wage for over 25s in 2026?

From April 2026, the National Living Wage (the minimum wage for workers aged 21 and over) is £12.71 per hour. This rate applies to all workers aged 21 and above, not just those over 25. The 18–20 rate is £10.85, and under-18s and apprentices get £8.00 per hour.

How much take-home pay will I get on the 2026 minimum wage?

If you work 37.5 hours a week at £12.71, your gross annual pay is about £24,785. After Income Tax (£2,443) and National Insurance (£977), your take-home pay is roughly £21,364 a year, or £1,780 a month. If you work 40 hours, gross is £26,437 and take-home about £22,554 a year (£1,880 a month). These figures assume no pension or student loan deductions.

Does the minimum wage differ in Scotland in 2026?

The minimum wage rate itself is the same across the UK (£12.71 for 21+). However, Scotland has its own Income Tax bands. For someone earning £24,785, Scottish Income Tax is slightly lower than in England because of the 19% starter rate on the first £3,967 of taxable income. This means take-home pay in Scotland is about £39 more per year than in England at this salary level.