What is minimum wage going up to in 2026? New National Living Wage rates and take-home pay explained

What is minimum wage going up to in 2026?

If you're asking what is minimum wage going up to in the UK, the answer is clear: from 1 April 2026, all National Minimum Wage rates increase, with the National Living Wage for workers aged 21 and over rising to £12.71 per hour. This article breaks down the new rates, what they mean for your take-home pay, and how tax, National Insurance, and regional differences affect your net income.

National Living Wage and National Minimum Wage rates from April 2026

The Government confirmed the new rates following recommendations from the Low Pay Commission. The increases are set out in the National Minimum Wage (Amendment) Regulations 2026 and apply across England, Wales, Scotland, and Northern Ireland.

Category	Hourly rate from April 2026	Increase
National Living Wage (21 and over)	£12.71	+£0.50 (4.1%)
18-20 Year Old Rate	£10.85	+£0.85 (8.5%)
16-17 Year Old Rate	£8.00	+£0.45 (6.0%)
Apprentice Rate	£8.00	+£0.45 (6.0%)
Accommodation Offset (per day)	£11.10	+£0.44 (4.1%)

Source: GOV.UK National Living Wage announcement and The National Minimum Wage in 2026 report.

How much take-home pay can you expect?

To understand your net pay, you need to consider Income Tax and employee National Insurance contributions. For the 2026/27 tax year, the standard Personal Allowance is £12,570 (HMRC rates and thresholds for employers 2026 to 2027).

Example: Full-time worker on National Living Wage (37.5 hours/week)

• Gross annual salary: 37.5 hrs × 52 weeks × £12.71 = £24,784.50
• Income Tax: 20% on earnings above £12,570 = 20% × (£24,784.50 – £12,570) = £2,442.90
• Employee National Insurance: 8% on earnings between £12,570 and £50,270 = 8% × (£24,784.50 – £12,570) = £977.16
• Total deductions: £3,420.06
• Annual take-home pay: £21,364.44
• Monthly take-home pay: approximately £1,780

This is a calculator estimate based on standard thresholds. Your actual take-home pay may differ if you have a different tax code, contribute to a pension, or have student loan deductions. For a personalised calculation, use our take-home calculator.

Regional differences: Scotland and Wales

Scotland uses its own Income Tax bands, which can significantly affect take-home pay for higher earners. For 2026/27, the Scottish bands are:

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

For a full-time NLW earner in Scotland, the tax calculation would differ because the starter and basic bands apply. The take-home pay would be slightly lower than in England due to the intermediate rate kicking in at lower earnings. Check our salary articles for more on Scottish tax.

Wales follows the same Income Tax bands as England and Northern Ireland, so no additional regional variation.

Student loan repayments

If you have a student loan, repayments are deducted from your pay once your earnings exceed the relevant threshold. For 2026/27, the thresholds are:

• 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

Deductions are 9% of earnings above the threshold for student loans and 6% for postgraduate loans. A full-time NLW earner (£24,785) would only repay if they have a Plan 5 loan (threshold £25,000 – just above) or a Postgraduate Loan (threshold £21,000 – repayments would apply).

Other considerations

• Pension contributions: If you opt into a workplace pension, your take-home pay will be lower, but you gain employer contributions and tax relief.
• Employer National Insurance: Your employer pays secondary contributions (15% on earnings above £5,000 for 2026/27), but this does not affect your net pay.
• Tax code changes: If you have untaxed income or benefits in kind, your tax code may reduce your Personal Allowance.

For more detailed data on UK earnings, see the ONS Annual Survey of Hours and Earnings (ASHE) 2026 release, which provides official median and mean pay figures.

Frequently Asked Questions

What is the minimum wage going up to in April 2026 for workers aged 21 and over? The National Living Wage for workers aged 21 and over increases to £12.71 per hour from 1 April 2026. This is a rise of 50p (4.1%) from the previous rate of £12.21. The new rate follows recommendations from the Low Pay Commission and was confirmed by the Government in the National Minimum Wage (Amendment) Regulations 2026.

How much take-home pay will I get if I work full-time on the new National Living Wage? For a full-time worker on 37.5 hours per week at £12.71 per hour, gross annual pay is approximately £24,785. After deducting Income Tax (20% on earnings above £12,570) and employee National Insurance (8% on earnings between £12,570 and £50,270), typical monthly take-home pay is around £1,780. This is an estimate; actual take-home pay depends on your tax code, pension contributions, student loan repayments, and whether you live in Scotland where different Income Tax bands apply.

Do the new minimum wage rates affect student loan repayments? Student loan repayments are based on your earnings, not directly on the minimum wage. However, if your gross salary exceeds the relevant repayment threshold, you will make deductions. For 2026/27, thresholds are: Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000, and Postgraduate Loan £21,000. Deductions are 9% of earnings above the threshold for student loans and 6% for postgraduate loans. A full-time NLW worker earning around £24,785 would only start repaying if they have a Plan 5 loan (threshold £25,000) or a Postgraduate Loan (threshold £21,000).

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Disclaimer: Figures are public-statistics or calculator estimates for a single person with the standard Personal Allowance, no pension contributions and no student loan. Actual take-home pay varies by tax code, pension, Scottish rates, benefits in kind and other deductions. Always check your payslip and official GOV.UK guidance.