What's Minimum Wage UK 2026? A Guide to Your Take-Home Pay

What's Minimum Wage UK 2026? Understanding Your Take-Home Pay

If you're asking "what's minimum wage UK 2026", you're likely trying to work out how much you'll actually earn after deductions. The official rates have been confirmed by GOV.UK, and from April 2026 the National Living Wage for workers aged 21 and over rises to £12.71 per hour – a 4.1% increase from the previous £12.21. For younger workers, the 18-20 rate goes up to £10.85, and the 16-17 rate to £8.00. Apprentices also receive £8.00 per hour.

But gross hourly pay is only part of the story. Your take-home pay – what lands in your bank account – is affected by Income Tax, National Insurance, pension contributions, and possibly student loan repayments. This guide explains how to estimate your net pay based on the 2026/27 tax year.

Gross Salary on Minimum Wage

A full-time employee working 37.5 hours per week on the National Living Wage earns:

• Weekly: £12.71 × 37.5 = £476.63
• Annual: £476.63 × 52 = £24,784.50 (rounded to £24,785)

This is below the median UK full-time salary of around £39,039 (ONS ASHE), so most minimum wage workers pay only basic rate tax and some National Insurance.

How Income Tax Affects Your Pay

For the 2026/27 tax year, the standard Personal Allowance is £12,570 – you pay no tax on this portion. Earnings above that are taxed at:

• Basic rate (20%): £12,571 to £50,270 (but for minimum wage earners, only up to £24,785)
• Higher rate (40%): £50,271 to £125,140
• Additional rate (45%): above £125,140

So a minimum wage worker earning £24,785 pays 20% on £12,215 (£24,785 – £12,570), which is £2,443 in Income Tax per year.

Note for Scotland: Scottish residents have different bands. The starter rate is 19% on the first £3,967 above the Personal Allowance, then 20% up to £16,956, 21% up to £31,092, and so on. For a £24,785 salary, Scottish tax would be slightly lower than in England. See our salary data for a full comparison.

National Insurance Deductions

Employee National Insurance (Class 1) is calculated weekly/monthly. For 2026/27:

• Lower Earnings Limit: £6,708/year – no NI due below this
• Primary Threshold: £12,570/year – earnings between £6,708 and £12,570 are at 0%
• 8% on earnings between £12,570 and £50,270 (Upper Earnings Limit)
• 2% on earnings above £50,270

For a £24,785 salary, NI is 8% on £12,215 (£24,785 – £12,570) = £977.20 per year.

Total deductions (Income Tax + NI) = £2,443 + £977 = £3,420 per year, leaving take-home of £21,365 per year or about £1,780 per month.

Other Deductions: Pension and Student Loans

If you contribute to a workplace pension (auto-enrolment), your take-home pay will be lower. The minimum contribution is 5% of qualifying earnings (usually between £6,240 and £50,270), with an employer contribution of 3%. For a £24,785 salary, your 5% contribution would be about £1,239 per year, reducing monthly take-home by roughly £103.

If you have a student loan, repayments are 9% of earnings above the threshold (Plan 1: £26,900, Plan 2: £29,385, Plan 4: £33,795, Plan 5: £25,000). A minimum wage worker earning £24,785 would only repay if on Plan 5 (threshold £25,000), and then only on earnings above £25,000 – which is not the case here. Postgraduate loans are 6% above £21,000, so a worker earning £24,785 would repay 6% on £3,785 = £227 per year.

Real-World Take-Home Pay Estimates

GOV.UK analysis shows that a single person working 35 hours per week on the National Living Wage would see a 3.3% increase in weekly take-home pay from the 2026 uplift. For a couple with two children where one works full-time, the increase is at least 4.2% because Universal Credit also rises. This highlights how benefits can boost net income for low earners.

For a more personalised calculation, use our take-home calculator which accounts for your specific tax code, pension, and student loan situation.

Why Take-Home Pay Matters

Knowing your net pay helps with budgeting, comparing job offers, and understanding your financial position. The minimum wage is a floor, but many jobs pay above it. The median full-time salary of £39,039 gives a take-home of about £2,636 per month (single, no pension). If you're considering a new role, always look at the net annual figure, not just the hourly rate.

For further reading, check our salary articles on how tax bands and NI thresholds affect different income levels.

Summary of 2026 Minimum Wage Rates

Age Group	Hourly Rate	Full-Time Annual (37.5 hrs/wk)
21+ (National Living Wage)	£12.71	£24,785
18-20	£10.85	£21,158
Under 18	£8.00	£15,600
Apprentice	£8.00	£15,600

Remember: these are gross figures. Your actual take-home will depend on your personal circumstances. Always check your payslip and official GOV.UK guidance for the most accurate information.