What is the current minimum wage in the UK? Gross vs take-home pay explained

What is the current minimum wage in the UK?

If you're asking what is the current minimum wage, the answer depends on your age and employment status. From April 2026, the UK government has set new rates following recommendations from the Low Pay Commission. The headline figure is the National Living Wage for workers aged 21 and over: £12.71 per hour. This is a 4.1% increase on the previous year's rate of £12.21.

For younger workers, the rates are lower:

• 18 to 20 year olds: £10.85 per hour (an 8.5% rise)
• Under 18s (above school leaving age): £8.00 per hour
• Apprentices (under 19 or in first year of apprenticeship): £8.00 per hour

These rates apply from 1 April 2026 and are legally enforceable. Employers must pay at least these amounts, and you can check your pay using the GOV.UK National Minimum Wage calculator.

Gross salary on the minimum wage

Your annual gross pay depends on your contracted hours. Most full-time roles are between 35 and 40 hours per week. Here are the annual figures for the National Living Wage:

• 35 hours/week: £23,132
• 37.5 hours/week: £24,785
• 40 hours/week: £26,437

For the 18-20 rate at 37.5 hours, annual gross is £21,158. For the under 18/apprentice rate, it's £15,600.

Gross vs take-home: what you actually receive

Your take-home pay (net pay) is what lands in your bank account after deductions. The main deductions are Income Tax and National Insurance. For the 2026/27 tax year, the key thresholds are:

• Personal Allowance: £12,570 per year (tax-free)
• Basic rate tax: 20% on earnings from £12,571 to £50,270
• Employee National Insurance: 8% on earnings between £12,570 and £50,270, then 2% above that

Example: National Living Wage at 37.5 hours

Gross annual: £24,785

• Income Tax: 20% on £12,215 = £2,443
• National Insurance: 8% on £12,215 = £977
• Take-home pay: £21,364 per year, or £1,780 per month

That works out at about £10.96 per hour after deductions.

Example: National Living Wage at 40 hours

Gross annual: £26,437

• Income Tax: 20% on £13,867 = £2,773
• National Insurance: 8% on £13,867 = £1,109
• Take-home pay: £22,554 per year, or £1,880 per month

Example: 18-20 rate at 37.5 hours

Gross annual: £21,158

• Income Tax: 20% on £8,588 = £1,718
• National Insurance: 8% on £8,588 = £687
• Take-home pay: £18,753 per year, or £1,563 per month

Example: Under 18/apprentice rate at 37.5 hours

Gross annual: £15,600

• Income Tax: 20% on £3,030 = £606
• National Insurance: 8% on £3,030 = £242
• Take-home pay: £14,752 per year, or £1,229 per month

Use our take-home calculator to work out your own net pay based on your exact hours and circumstances.

Other deductions: pension and student loans

Many employees also have pension contributions (auto-enrolment) and student loan repayments. These reduce take-home pay further.

Pension

If you're enrolled in a workplace pension, you typically contribute at least 5% of your qualifying earnings (with employer contribution of 3%). On the National Living Wage, this could reduce take-home by around £60-£80 per month, depending on the scheme.

Student loans

Most student loan plans have thresholds above the minimum wage. For example:

• Plan 1: threshold £26,900 – only applies if you earn above that (40-hour week on NLW is £26,437, so no repayment)
• Plan 2: threshold £29,385 – no repayment on minimum wage
• Plan 4 (Scotland): threshold £33,795 – no repayment
• Plan 5 (post-2023 students): threshold £25,000 – at 40 hours on NLW (£26,437), you repay 9% on the £1,437 above the threshold, about £129 per year or £10.78 per month
• Postgraduate Loan: threshold £21,000 – at 37.5 hours on NLW (£24,785), you repay 6% on £3,785, about £227 per year or £19 per month

Scotland: different Income Tax bands

If you live in Scotland, Income Tax is calculated differently. For 2026/27, the Scottish bands are:

• Starter rate: 19% on first £3,967 of taxable income
• 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

On the National Living Wage (37.5 hours, £24,785), a Scottish worker pays slightly less Income Tax because the starter rate applies to the first £3,967 of taxable income. This saves about £40 per year compared to the rest of the UK, giving a monthly take-home of around £1,784 instead of £1,780.

Beyond the minimum wage: median and professional salaries

While the minimum wage is a floor, many workers earn more. According to ONS ASHE data, the median full-time gross annual salary in the UK is around £39,039. For a single person with no pension or student loan, that gives a monthly take-home of about £2,636. NHS pay scales for 2026/27 show Band 5 entry at £32,073 in England, rising to £39,043 at the top of the band. You can explore more salary data on our salary data page.

Summary

Knowing what is the current minimum wage is essential for budgeting and job hunting. The National Living Wage of £12.71 per hour (from April 2026) provides a gross annual salary of around £24,785 for a standard 37.5-hour week, with take-home pay of approximately £1,780 per month after tax and NI. Remember that your actual take-home will vary if you have pension contributions, student loan repayments, or live in Scotland. Always check your payslip and use official GOV.UK guidance for your exact situation.

For more articles on UK salaries and deductions, visit our salary articles section.