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

What is minimum wage going up to in 2026?

If you're wondering what is minimum wage going up to in 2026, the answer is clear: from 1 April 2026, the National Living Wage (NLW) for workers aged 21 and over increases to £12.71 per hour. This is a 4.1% rise from the previous rate of £12.21. The government accepted the Low Pay Commission's recommendations in full, as confirmed by GOV.UK.

Other rates also increase:

• 18-20 year olds: £10.85 per hour (up 8.5%)
• 16-17 year olds: £8.00 per hour (up 6%)
• Apprentices: £8.00 per hour (up 6%)

The accommodation offset (the amount an employer can deduct for providing living accommodation) rises to £11.10 per day.

How does this affect your gross salary?

For a full-time worker on a 37.5-hour week (common in many sectors), the new NLW gives a gross annual salary of approximately £24,785. That's about £1,975 more than the 2025 rate of £12.21 per hour. The Low Pay Commission expects this increase to keep ahead of inflation, meaning a real-terms pay rise for minimum wage workers.

Take-home pay: from gross to net

Understanding your take-home pay is essential. Your gross salary is what you earn before deductions. After Income Tax, National Insurance (NI), and any other deductions (like pension or student loan), you get your net pay.

For a single person on the NLW with the standard Personal Allowance of £12,570 (2026/27), here's a rough breakdown:

• Gross annual: £24,785
• Income Tax: approximately £2,443 (20% on earnings above £12,570)
• National Insurance: approximately £1,483 (Class 1 at 8% on earnings above the primary threshold, roughly £12,570)
• Estimated take-home: about £1,780 per month (or £21,360 per year)

These figures assume no pension contributions, no student loan, and no other deductions. Your actual take-home will vary based on your tax code, whether you contribute to a workplace pension, and if you have a student loan repayment plan.

Scotland's different Income Tax bands

If you live in Scotland, Income Tax rates and bands differ from the rest of the UK. The Scottish government sets its own thresholds. While the search results did not provide specific Scottish rates for 2026/27, it's important to check the latest Scottish Budget. Your take-home pay could be slightly higher or lower depending on which band applies.

The bigger picture: Universal Credit and household incomes

The Low Pay Commission's report highlights that the impact on take-home pay depends on your household circumstances. For a single person working full-time on the NLW, the increase in take-home pay is about 3.3% (or £11.90 per week) after tax and NI. However, for a couple with two children where one person works full-time, the increase is at least 4.2% because they continue to receive Universal Credit.

This year, the government also increased the Universal Credit standard allowance by 6.2% – higher than the NLW rise. So if you receive UC, your overall income may rise more than the wage increase alone. Conversely, if you pay tax but don't get UC, frozen tax thresholds mean your average tax rate goes up slightly, reducing the net benefit.

Pension contributions and student loans

Many workers automatically contribute to a workplace pension (at least 5% of qualifying earnings, with employer contribution). This reduces your take-home pay but builds retirement savings. Similarly, if you have a student loan (Plan 1, Plan 2, Plan 4, or Postgraduate), repayments are deducted from your salary above certain thresholds. Always check your payslip for these deductions.

What about 2027?

The Low Pay Commission's remit states that the NLW should continue to be two-thirds of median hourly earnings. Based on current forecasts, the rate needed to maintain this in 2027 is estimated between £13.02 and £13.34, with a central estimate of £13.18. That would be a further increase of 2.4% to 5.0% over the 2026 rate. However, these projections are uncertain and depend on economic conditions.

How to calculate your own take-home pay

To get a personalised estimate, use our take-home calculator. You can enter your hourly rate or annual salary, adjust for pension contributions, student loan, and Scottish tax. For more context on UK salaries, browse our salary articles or explore salary data for different occupations.

Summary

So, what is minimum wage going up to in 2026? The National Living Wage rises to £12.71 per hour from April, giving a full-time worker about £24,785 gross per year. After tax and NI, take-home pay is roughly £1,780 per month for a single person with no other deductions. Remember that your actual net pay depends on your tax code, pension, student loan, and whether you live in Scotland. Always check official GOV.UK guidance and your payslip for accuracy.

For further reading, visit After Tax Salary for resources on UK pay and deductions.