Economics

How much is the minimum wage?

What are the National Minimum Wage and the National Living Wage, and how much are they worth?

How much is the minimum wage?

The official minimum pay rates increased on 1 April for 2.7 million workers.

For employees aged 21 and over, the rate is known as the National Living Wage, while workers aged 18 to 20 are covered by the National Minimum Wage.

These rates apply throughout the UK.

From 1 April 2026, workers over 21 on the National Living Wage are paid £12.71 an hour, which is 50p more than in 2025.

For a full-time worker putting in 37.5 hours a week, that works out at £24,784.50 a year - £900 more than before.

The rate for 18 to 20-year-olds has risen to £10.85 an hour.

That is an increase of 85p an hour.

For someone working full time, it means an extra £1,500 a year.

The government said it wants to eventually end this separate rate for 18 to 20-year-olds and introduce a single rate for all adults.

The minimum wage for 16 and 17-year-olds has also increased to £8 an hour.

There are different pay rates for apprentices

Apprentices aged 16 to 18 are entitled to the National Minimum Wage rate for their age group, which is currently £8.

Those aged 19, or those in the first year of their apprenticeship, are paid the same amount.

But apprentices over 19 - or those who have already finished their first year - are entitled to the relevant National Minimum Wage or National Living Wage rate for their age.

Some workers are not eligible for either the National Minimum Wage or the National Living Wage.

This includes the self-employed, company directors, volunteers, members of the armed forces and prisoners.

People with disabilities or those who are long-term unemployed and take part in government work programmes are paid fixed amounts at different stages of the scheme.

These amounts are lower than the equivalent National Minimum or Living rate.

Yes. It is a criminal offence for employers not to pay eligible staff the correct National Minimum and Living Wages.

The rates apply even if workers are not paid by the hour.

If you think you are being paid the wrong amount, you can complain through the HMRC website.

You can also seek advice from workplace experts Acas.

Any employer who fails to pay the correct amount can be penalised by HMRC.

In March 2026, the government said 389 employers had been fined about £12.6m for failing to pay staff properly.

They must also repay the missing £7.3m to around 60,000 workers who were underpaid.

Firms named included the nursery chain Busy Bees, Norwich City Football Club, Hays Travel and Costa Coffee.

The Real Living Wage

It rises every October.

Some firms choose to pay the Real Living Wage, but it is not compulsory.

According to the charity, almost 500,000 employees working for nearly 17,000 firms receive the voluntary rate of pay.

In October 2026, the foundation said the UK rate would rise by 4.8% to £14.10 an hour, while the London Living Wage for workers in the capital would increase by 4.4% to £15.45.

The Living Wage Foundation says the rate is worth more than £2,700 extra per year compared with the legal minimum wage in the UK, and more than £5,300 in London.

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