What's Minimum Wage UK? 2026/27 National Living Wage Rates and Take-Home Pay

What's Minimum Wage UK? 2026/27 National Living Wage and Take-Home Pay

If you're wondering "whats minimum wage uk" for the current tax year, you're not alone. The rates change each April, and understanding what you actually take home after deductions is key to budgeting. This guide covers the 2026/27 National Living Wage and National Minimum Wage, how much you earn after tax and National Insurance, and how Scotland differs.

National Living Wage and National Minimum Wage Rates 2026/27

From April 2026, the government sets the following statutory minimum hourly rates:

• National Living Wage (21 and over): £12.71 per hour (up from £12.21)
• 18–20 year olds: £10.85 per hour
• Under-18s: £8.00 per hour
• Apprentices: £8.00 per hour (applies to apprentices under 19, or 19+ in first year)

These rates are published by GOV.UK and apply across the UK. Full-time work is typically 37.5 hours per week, but many roles use 35 or 40 hours. The annual gross salary for a 37.5-hour week on the NLW is approximately £24,785.

Take-Home Pay on the National Living Wage

Your take-home pay is what reaches your bank after Income Tax and National Insurance are deducted. For 2026/27, the standard Personal Allowance is £12,570 (tax-free), and the basic rate of Income Tax is 20% on earnings above that. Employee National Insurance is 8% on earnings above £12,570, up to £50,270.

For a full-time NLW worker (37.5 hours/week, £24,785 gross):

• Income Tax: 20% on £12,214.50 = £2,443
• National Insurance: 8% on £12,214.50 = £977
• Take-home pay: £24,785 – £2,443 – £977 = £21,364 per year (about £1,780 per month)

This is for England, Wales and Northern Ireland. In Scotland, Income Tax bands are different. The starter rate of 19% applies to the first £3,967 of taxable income, so the tax bill is slightly lower. A Scottish NLW worker takes home about £21,404 per year (£1,784 per month) – roughly £40 more.

Pension and Student Loan Deductions

Most employees aged 22 and over earning more than £10,000 are automatically enrolled into a workplace pension. The minimum employee contribution is 5% of qualifying earnings (usually between £6,240 and £50,270). For an NLW worker, this reduces take-home pay to about £20,623 per year in rUK. Opting out is possible but means losing the employer contribution.

Student loan repayments depend on your plan. For 2026/27:

• Plan 1 threshold: £26,900
• Plan 2 threshold: £29,385
• Plan 4 (Scotland): £33,795
• Plan 5: £25,000
• Postgraduate Loan: £21,000

At NLW earnings (around £24,785), only Plan 5 and Postgraduate Loan may apply. At 37.5 hours, you are below the Plan 5 threshold, so no repayment. At 40 hours (£26,437), you repay 9% of earnings above £25,000 – about £129 per year. Postgraduate Loan repayments (6% above £21,000) would apply at both hour levels, adding about £227 per year at 37.5 hours.

Regional and Seniority Differences

The minimum wage is a floor, but actual earnings vary by region and occupation. The UK median full-time gross annual pay is around £39,039 (ONS ASHE), well above the NLW. In London and the South East, wages tend to be higher, while in parts of the North and Wales, more workers are on or near the minimum wage. Seniority also matters: experienced workers in sectors like care, retail, or hospitality often earn above the NLW, but many still fall below the median.

For a deeper look at how your salary compares, explore our salary articles or use the take-home calculator to see your exact deductions.

What If You're Under 21 or an Apprentice?

If you're 18–20 and on £10.85 per hour, full-time (37.5 hours) gives about £21,158 gross. After tax and NI, take-home is roughly £18,753 per year (£1,563 per month). Under-18s and apprentices on £8.00 per hour earn about £15,600 gross, with take-home around £14,752 per year (£1,229 per month). Note that apprentices aged 19+ in their second year must be paid the rate for their age.

Key Takeaways

• The National Living Wage for 2026/27 is £12.71 per hour for workers aged 21+.
• Full-time take-home pay is about £1,780 per month in England, Wales and NI, and £1,784 per month in Scotland.
• Pension contributions reduce take-home further; student loans may apply depending on your plan and hours.
• Always check your payslip and official GOV.UK guidance, as individual circumstances vary.

For more information on UK salary trends and take-home pay, visit After Tax Salary for guides and calculators.