What's the National Minimum Wage in 2026? Take-Home Pay Explained

What's the National Minimum Wage in 2026?

If you're wondering whats national minimum wage for the current tax year, the answer depends on your age. From 1 April 2026, the National Living Wage (the minimum for workers aged 21 and over) rises to £12.71 per hour, a 4.1% increase on the previous £12.21. Younger workers have separate rates: £10.85 for 18-20 year olds, and £8.00 for under 18s and apprentices (under 19 or in the first year of their apprenticeship). These rates are set by the Low Pay Commission and apply across the UK, as confirmed by GOV.UK National Living Wage rates.

How Take-Home Pay is Calculated on the Minimum Wage

Your take-home pay (net pay) is what lands in your bank after deductions. For a worker on the National Living Wage, the main deductions are Income Tax and employee National Insurance. Both are calculated on your gross earnings, but they use their own thresholds.

Income Tax

Everyone has a Personal Allowance of £12,570 for 2026/27 – that's the amount you can earn before paying tax. On earnings above that, the basic rate of 20% applies up to £37,700. For a full-time worker on the NLW, all taxable income falls within this band.

National Insurance

Employee National Insurance is 8% on earnings between the primary threshold (£12,570) and the upper earnings limit (£50,270). Above that, the rate drops to 2%. For minimum wage earners, you only pay the 8% rate on the portion above £12,570.

Worked Example: 37.5 Hours per Week

Take a worker aged 21+ on £12.71 per hour, working 37.5 hours a week (52 paid weeks):

• Annual gross pay: £12.71 × 37.5 × 52 = £24,784.50
• Income Tax: 20% of (£24,784.50 – £12,570) = £2,442.90
• National Insurance: 8% of (£24,784.50 – £12,570) = £977.16
• Take-home pay: £24,784.50 – £2,442.90 – £977.16 = £21,364.44 per year
• Monthly take-home: £1,780.37

If you work 40 hours, gross rises to £26,436.80, tax to £2,773.36, NI to £1,109.34, and take-home to £1,879.51 per month. For 35 hours, take-home is about £1,681.23 per month.

These figures are from the take-home calculator and assume no pension or student loan. Actual amounts vary by tax code and other factors.

Scotland's Different Tax Bands

If you live in Scotland, Income Tax bands are different. For 2026/27, the starter rate is 19% on the first £3,967 of taxable income, then 20% up to £16,956, 21% up to £31,092, and so on. At NLW earnings, the Scottish system means you pay slightly less tax – around £39.67 less per year at 37.5 hours – boosting monthly take-home to about £1,783.68. See salary articles for more on Scottish rates.

Student Loan Deductions

Most student loan plans have repayment thresholds above typical NLW earnings. Plan 1 (£26,900), Plan 2 (£29,385) and Plan 4 (£33,795) are all above the NLW gross at 40 hours (£26,436.80), so no deductions apply. However, Plan 5 (threshold £25,000) may require a 9% repayment on earnings above that – about £129 per year at 40 hours. The Postgraduate Loan threshold is £21,000, so a 6% repayment applies on earnings above that, which could be around £326 per year at 40 hours. At 37.5 hours, Plan 5 and PG Loan deductions are smaller or zero.

Pension Contributions

If you're enrolled in a workplace pension, your take-home pay will be lower. A typical 5% employee contribution (with 3% employer) is taken from your gross pay before tax, but you get tax relief on that amount. For example, on the NLW at 37.5 hours, a 5% contribution reduces gross by £1,239.23, but your take-home only falls by about £991 after tax relief. Use the salary data page to see detailed breakdowns.

Summary of Take-Home Pay on Minimum Wage Rates

Worker category	Hourly rate	Hours/week	Annual gross	Monthly take-home (approx)
21+ (NLW)	£12.71	37.5	£24,784.50	£1,780.37
21+ (NLW)	£12.71	40	£26,436.80	£1,879.51
18-20	£10.85	37.5	£21,157.50	£1,562.75
Under 18 / apprentice	£8.00	37.5	£15,600.00	£1,229.30

Figures are for England, Wales and Northern Ireland with standard Personal Allowance, no pension, no student loan. Scottish residents may see slightly higher take-home.

Where to Find More

For a personalised calculation, try our take-home calculator. You can also explore topics on tax codes, pension contributions, and Scottish rates. Remember that your actual take-home depends on your individual circumstances – always check your payslip and official GOV.UK guidance.