Understanding the Under 18 Minimum Wage and Your Take-Home Pay in 2026/27

Understanding the Under 18 Minimum Wage and Your Take-Home Pay

If you're under 18 and working in the UK, your pay is protected by the National Minimum Wage (NMW). From April 2026, the hourly rate for workers under 18 rises to £8.00, as confirmed by GOV.UK National Minimum Wage rates. This rate also applies to apprentices under 19 or in their first year. But what does that mean for the money that actually lands in your bank account? Let's break down how take-home pay is calculated for under 18 minimum wage earners.

Gross Salary vs Take-Home Pay

Your gross salary is the total amount you earn before any deductions. For an under 18 worker on £8.00 per hour, the gross depends on how many hours you work each week. Most under 18s work part-time, perhaps 10 to 20 hours per week alongside education or training. For example:

• 15 hours per week × 52 weeks = 780 hours per year
• Gross annual pay = 780 × £8.00 = £6,240

Your take-home pay (net pay) is what you receive after deductions like Income Tax, National Insurance (NI), and any pension contributions. Because the Personal Allowance for Income Tax is £12,570 for 2026/27, and the NI primary threshold is also £12,570, most under 18 workers on part-time hours will pay no Income Tax and no National Insurance. That means your take-home pay equals your gross pay.

If you work more hours – say 25 hours per week – your gross rises to about £10,400, still below the thresholds, so still no deductions. Only if you work around 30 hours per week (gross ~£12,480) would you start paying NI at 8% on the amount above £12,570, and Income Tax at 20% on earnings above £12,570.

What About National Insurance?

Even if your annual earnings are below £12,570, you may still see NI deducted if your weekly earnings exceed the weekly threshold (about £242 per week). However, for 15-20 hours at £8.00, weekly earnings are £120-£160, well below that. So in practice, most under 18 minimum wage workers pay no NI. Always check your payslip – if you see NI deducted, your employer may be applying the rules incorrectly, or you may have multiple jobs.

Pension and Student Loans

Workplace pension auto-enrolment applies if you earn over £10,000 per year and are aged 22 or over. Under 18s are not automatically enrolled, but you can opt in. If you do, your take-home pay reduces by your contribution (typically 5% of qualifying earnings). Student loan repayments are unlikely for under 18s, but if you have a postgraduate loan, deductions start at £21,000 per year.

Scottish Income Tax

If you live in Scotland, Income Tax bands are different. The starter rate is 19% on earnings from £12,571 to £16,537, then 20% up to £29,526. For under 18 workers earning below £12,570, the Scottish bands don't apply, so your take-home is the same as in rUK. But if you earn more, you may pay slightly less tax at the starter rate compared to the 20% basic rate in rUK.

Example Take-Home Calculation

Let's take a typical under 18 worker in England:

• Hourly rate: £8.00
• Hours per week: 15
• Annual gross: £6,240
• Income Tax: £0 (below Personal Allowance)
• National Insurance: £0 (below primary threshold)
• Take-home pay: £6,240 per year (£520 per month)

If the same worker did 30 hours per week:

• Annual gross: £12,480
• Income Tax: 20% on (£12,480 - £12,570) = £0 (still below allowance? Actually £12,480 is below £12,570, so no tax)
• NI: 8% on (£12,480 - £12,570) = £0 (below threshold)
• Take-home: £12,480

Only when gross exceeds £12,570 do deductions start. For example, at 35 hours per week (gross £14,560):

• Income Tax: 20% on (£14,560 - £12,570) = £398
• NI: 8% on (£14,560 - £12,570) = £159.20
• Take-home: £14,560 - £398 - £159.20 = £14,002.80

Why Understanding Take-Home Matters

When comparing job offers or planning your budget, always look at net pay, not just the hourly rate. Our take-home calculator can help you estimate your net pay based on your hours, tax code, and any deductions. You can also browse our salary articles for more guidance on UK pay.

Key Takeaways

• The under 18 minimum wage is £8.00 per hour from April 2026.
• Most part-time under 18 workers pay no Income Tax or National Insurance because their earnings fall below the £12,570 thresholds.
• Take-home pay is essentially the same as gross pay for typical part-time hours.
• If you work more than about 30 hours per week, you may start paying NI and tax.
• Always check your payslip and use official GOV.UK resources for the latest rates.

For a full breakdown of all minimum wage rates and their take-home impact, see our salary data page.