Minimum Wage Under 21: Take-Home Pay, Tax and Regional Differences in 2026/27

Minimum Wage Under 21: Rates and Gross Pay

The minimum wage under 21 is set by the National Minimum Wage (NMW), which applies to workers aged under 21. From April 2026, the rates are:

• 18 to 20 year olds: £10.85 per hour
• Under 18s and apprentices: £8.00 per hour

For a typical full-time week of 37.5 hours (52 paid weeks), the gross annual salaries are:

• 18-20: £10.85 × 37.5 × 52 = £21,158
• Under 18: £8.00 × 37.5 × 52 = £15,600

These figures come from GOV.UK National Living Wage rates and are the legal minimums. Many employers pay above the minimum, especially for roles requiring experience or in sectors with higher demand.

Take-Home Pay After Tax and National Insurance

Gross salary is only part of the picture. After deducting Income Tax and employee National Insurance (NI), your take-home pay is what reaches your bank account.

18-20 Year Olds

On £21,158 gross, the first £12,570 is tax-free (Personal Allowance). The remaining £8,588 is taxed at 20%, giving £1,718 in Income Tax. Employee NI is 8% on the same £8,588 above the primary threshold (£12,570), giving £687. Total deductions: £2,405. Take-home: £18,753 per year or £1,563 per month.

Under 18s

On £15,600 gross, taxable income is £3,030 (£15,600 - £12,570). Income Tax at 20%: £606. NI at 8% on £3,030: £242. Take-home: £14,752 per year or £1,229 per month.

These calculations assume the standard tax code 1257L and no other deductions. Use our take-home calculator to check your exact figures.

Pension and Student Loan Considerations

Pension

Auto-enrolment into a workplace pension starts at age 22. Workers under 21 on the minimum wage are not automatically enrolled, though they can opt in voluntarily. If they do, a 5% employee contribution would reduce take-home pay (e.g., on £21,158, 5% is £1,058 per year, or about £88 per month).

Student Loans

Most student loan repayment thresholds are above minimum wage earnings for under 21s. For example:

• Plan 5: £25,000 – no repayment on £21,158
• Plan 1: £26,900 – no repayment
• Postgraduate Loan: £21,000 – if earnings exceed £21,000, 6% is deducted on the excess. For an 18-20 year old earning £21,158, that’s 6% of £158 = £9.48 per year (about £0.79 per month).

Regional Differences: Scotland vs Rest of UK

Scotland sets its own Income Tax bands, which affect take-home pay for minimum wage earners under 21. In 2026/27, the Scottish starter rate is 19% on the first £3,967 of taxable income, then 20% up to £29,526. For an 18-20 year old earning £21,158:

• Taxable income: £8,588
• First £3,967 at 19%: £753.73
• Remaining £4,621 at 20%: £924.20
• Total Scottish Income Tax: £1,677.93 (vs £1,717.60 in rUK)

This saves about £40 per year, so monthly take-home in Scotland is roughly £1,566 instead of £1,563. The difference is small but worth noting if you live or work in Scotland.

Comparing with Higher Earnings

For context, the UK median full-time gross annual pay is around £39,039 (ONS ASHE). A worker on the minimum wage under 21 earns significantly less, but the effective tax rate is lower because a larger portion of income is within the Personal Allowance. As earnings rise, the proportion of tax and NI increases.

If you’re considering a job offer or planning your finances, always compare net pay rather than gross. Our salary articles cover take-home pay for various income levels, including the National Living Wage for those aged 21 and over.

Summary

The minimum wage under 21 provides a baseline for younger workers. Understanding your take-home pay after tax, NI, and any optional deductions helps you budget effectively. Remember that rates and tax rules can change, and regional differences (especially in Scotland) can slightly alter net income. Always check official sources like HMRC and GOV.UK for the latest thresholds.