What Is the Minimum Wage Per Year in the UK? 2026/27 Take-Home Pay by Region and Age

Minimum Wage Per Year: What You Actually Earn After Tax

Understanding the minimum wage per year is essential for workers and job seekers across the UK. The National Living Wage (NLW) and National Minimum Wage (NMW) set the legal floor for hourly pay, but what matters most is what lands in your bank account after deductions. This article breaks down the annual gross and take-home figures for 2026/27, highlighting differences by age, region, and working hours.

National Living Wage and National Minimum Wage Rates for 2026/27

From April 2026, the NLW for workers aged 21 and over rises to £12.71 per hour, a 4.1% increase from the previous £12.21. For 18 to 20 year olds, the NMW is £10.85 per hour, and for under-18s and apprentices it is £8.00 per hour. These rates are set by the government and apply across the UK, though Scotland sets its own Income Tax bands which affect take-home pay.

Calculating the Minimum Wage Per Year

The annual gross salary depends on contracted hours. A standard full-time week is often 37.5 hours, but many roles use 35 or 40 hours. Using 52 paid weeks:

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

For younger workers on the NMW, the annual figures are lower. At 37.5 hours, an 18–20 year old earns £21,157.50 gross, while an under-18 or apprentice earns £15,600.

Take-Home Pay After Income Tax and National Insurance

In England, Wales, and Northern Ireland, the standard Personal Allowance for 2026/27 is £12,570. Income above this is taxed at 20% up to £50,270. Employee National Insurance is charged at 8% on earnings between £12,570 and £50,270, then 2% above that.

For a 37.5-hour NLW worker earning £24,784.50:

• Income Tax: 20% of (£24,784.50 – £12,570) = £2,442.90
• National Insurance: 8% of (£24,784.50 – £12,570) = £977.16
• Take-home pay: £24,784.50 – £2,442.90 – £977.16 = £21,364.44 per year, or £1,780.37 per month

For a 40-hour week (£26,436.80):

• Income Tax: 20% of (£26,436.80 – £12,570) = £2,773.36
• National Insurance: 8% of (£26,436.80 – £12,570) = £1,109.34
• Take-home pay: £22,554.10 per year, or £1,879.51 per month

These figures assume no pension contributions, student loan repayments, or other deductions. Adding a 5% workplace pension would reduce take-home by roughly £84 per month at the NLW rate.

Regional Differences: Scotland

Scotland uses its own Income Tax bands. For 2026/27, the starter rate of 19% applies to the first £3,967 of taxable income (from £12,571 to £16,537), followed by the basic rate of 20% up to £26,561, then intermediate 21%, higher 42%, and top 48%. National Insurance remains UK-wide.

At the NLW salary of £24,784.50, a Scottish worker pays slightly less Income Tax because the starter rate is lower than the 20% basic rate. The difference is about £39.67 per year, meaning take-home is around £21,404 annually, or £1,783.68 per month. For higher earners, the gap widens significantly due to the 42% higher rate starting at £43,663.

Seniority and Age Differences

The minimum wage per year varies by age band. Older workers (21+) receive the highest rate, while younger workers and apprentices earn less. This creates a significant gap in annual gross and net pay. For example, an 18–20 year old working 37.5 hours earns £21,157.50 gross, with take-home around £18,753 after tax and NI. An apprentice or under-18 earns just £15,600 gross, taking home about £14,752.

These differences matter for budgeting and career planning. Many young workers move into higher-paying roles as they gain experience, but the statutory minimum provides a baseline.

Student Loans and Other Deductions

Most student loan plans have thresholds above the NLW earnings. Plan 2 kicks in at £29,385, Plan 1 at £26,900, and Plan 4 (Scotland) at £33,795. Only Plan 5, with a threshold of £25,000, may affect a 40-hour NLW worker, resulting in a small repayment of about £10.78 per month. Postgraduate Loan repayments start at £21,000, so a 6% deduction applies on earnings above that, which could affect some NLW workers.

Using Our Tools

For a personalised estimate, use our take-home calculator to see how different hours, tax codes, and deductions affect your net pay. You can also explore salary data for comparisons across industries and regions.

Summary

The minimum wage per year in 2026/27 ranges from £15,600 for apprentices to £26,437 for a 40-hour NLW worker. After tax and NI, take-home pay is between £14,752 and £22,554. Regional differences in Scotland can add a small benefit at lower incomes, while age bands create significant gaps. Always check your payslip and official guidance from GOV.UK for your exact situation.