What is minimum wage in Scotland? Take-home pay explained for 2026/27

What is minimum wage in Scotland?

If you're asking what is minimum wage in Scotland, the answer depends on whether you mean the statutory National Living Wage or the voluntary Real Living Wage. For 2026/27, the National Living Wage for workers aged 21 and over is £12.71 per hour – the same rate as the rest of the UK. For a typical 37.5-hour week, that works out at a gross annual salary of around £24,785. However, Scotland applies its own Income Tax bands, which can affect your take-home pay differently than elsewhere in the UK.

Scottish Income Tax bands for 2026/27

The Scottish Government has confirmed the following tax bands and rates for 2026/27 (based on a standard Personal Allowance of £12,570):

• Starter rate: 19% on income from £12,571 to £15,397
• Basic rate: 20% on income from £15,398 to £27,491
• Intermediate rate: 21% on income from £27,492 to £43,662
• Higher rate: 42% on income from £43,663 to £75,000
• Advanced rate: 45% on income from £75,001 to £125,140
• Top rate: 48% on income over £125,140

These thresholds mean that someone earning the National Living Wage will pay tax only at the Starter and Basic rates. The Starter rate band was increased by 40.3% for 2026/27, and the Basic rate band by 13.6%, which helps lower earners keep more of their pay.

Example take-home pay for a minimum wage earner in Scotland

Let's calculate the take-home pay for a single person earning the National Living Wage of £12.71 per hour, working 37.5 hours a week, 52 weeks a year. Gross annual salary: £24,785.

• Personal Allowance: £12,570 (tax-free)
• Taxable income: £24,785 – £12,570 = £12,215
• Starter rate: £2,827 at 19% = £537.13 (income from £12,571 to £15,397)
• Basic rate: £9,388 at 20% = £1,877.60 (income from £15,398 to £24,785)
• Total Income Tax: £2,414.73
• National Insurance (Class 1, employee rate 8% on earnings above £12,570): £12,215 × 8% = £977.20
• Total deductions: £3,391.93
• Annual take-home pay: £24,785 – £3,391.93 = £21,393.07
• Monthly take-home pay: approximately £1,782.76

This is slightly higher than the take-home pay for the same salary in England and Wales, because Scottish Starter and Basic rates are lower than the UK basic rate of 20% for the first band. According to the Scottish Government, those earning less than around £33,500 will pay less Income Tax in Scotland than elsewhere in the UK.

Real Living Wage vs National Living Wage

It's important to note that the Real Living Wage – a voluntary rate set by the Living Wage Foundation – is higher than the statutory minimum. For 2026/27, the Real Living Wage in Scotland is £13.40 per hour (based on a 37-hour week). That gives a gross annual salary of about £25,782. If you're paid the Real Living Wage, your take-home pay will be higher, but you'll also move into the Basic rate band more quickly.

How many people are affected?

The Scottish Government estimates that over 32% of Scottish adults (around 1.5 million) have incomes below the Personal Allowance of £12,570 and therefore pay no Income Tax at all. A further 7% (about 330,000) are Starter rate taxpayers with incomes below the Basic rate threshold. So for many low earners, the question what is minimum wage in Scotland is about net pay rather than tax complexity.

Using our take-home calculator

To see exactly how much you'll take home after Scottish Income Tax, National Insurance, and any other deductions, try our take-home calculator. It lets you enter your gross salary and see a full breakdown for Scotland or the rest of the UK. For more detailed articles on salary bands and tax changes, visit our salary articles.

Key takeaways

• The statutory minimum wage in Scotland for 2026/27 is £12.71 per hour (National Living Wage for age 21+).
• Scottish Income Tax bands are different: lower earners benefit from a 19% Starter rate and a 20% Basic rate.
• A minimum wage earner on £24,785 takes home about £1,783 per month after tax and NI.
• The Real Living Wage is higher at £13.40 per hour, but not a legal requirement.
• Always check your own tax code and deductions, as take-home pay can vary.