Minimum Wage for 18 Year Olds in 2026/27: Gross Pay, Take-Home and Tax Explained

Understanding the Minimum Wage for 18 Year Olds in 2026/27

The minimum wage for 18 year olds in the UK is set by the government and reviewed annually by the Low Pay Commission. From 1 April 2026, the National Minimum Wage (NMW) for workers aged 18 to 20 rises to £10.85 per hour, an increase of 8.5% from the previous £10.00 rate. This is part of a broader uprating that also sees the National Living Wage (for those aged 21 and over) increase to £12.71 per hour, and the rates for 16-17 year olds and apprentices rise to £8.00 per hour.

GOV.UK confirms these rates apply across the UK, though Scotland may have different Income Tax bands that could affect net pay for Scottish residents. The figures below assume the standard tax code 1257L, no pension contributions, and no student loan repayments.

Gross Salary at £10.85 per Hour

Your gross annual salary depends on your weekly hours. The most common full-time pattern is 37.5 or 40 hours per week. Here are the gross figures:

• 40 hours/week: £10.85 × 40 × 52 = £22,568 per year
• 37.5 hours/week: £10.85 × 37.5 × 52 = £21,158 per year
• 30 hours/week: £10.85 × 30 × 52 = £16,926 per year
• 20 hours/week: £10.85 × 20 × 52 = £11,284 per year
• 16 hours/week: £10.85 × 16 × 52 = £9,027 per year

Take-Home Pay After Tax and National Insurance

Your take-home (net) pay is what you actually receive after deductions. For the 2026/27 tax year, the key deductions are:

• Income Tax: 20% on earnings above the Personal Allowance of £12,570.
• National Insurance (NI): 8% on earnings above £12,570 (for employees).

Using the standard tax code 1257L, here are estimated monthly take-home figures for a single person:

• 40 hours/week: Gross £22,568 → Tax £2,000 + NI £800 → Net £19,768 per year → £1,647 per month
• 37.5 hours/week: Gross £21,158 → Tax £1,718 + NI £687 → Net £18,753 per year → £1,563 per month
• 30 hours/week: Gross £16,926 → Tax £871 + NI £349 → Net £15,706 per year → £1,309 per month
• 20 hours/week: Gross £11,284 → Tax £0 + NI £0 → Net £11,284 per year → £940 per month
• 16 hours/week: Gross £9,027 → Tax £0 + NI £0 → Net £9,027 per year → £752 per month

As you can see, part-time workers earning below the Personal Allowance pay no Income Tax and no NI, keeping their entire gross pay. This is a key advantage for students or those working limited hours.

How the Minimum Wage for 18 Year Olds Compares to Other Rates

The 18-20 rate of £10.85 is now 85% of the National Living Wage (£12.71). The Low Pay Commission notes that this proportion is similar to the early years of the NMW, reflecting the government’s commitment to eventually eliminate the age differential. For context, the 16-17 rate and apprentice rate are both £8.00 per hour.

If you turn 21 during the tax year, your employer must pay you the higher NLW rate from your 21st birthday. Always check your payslip to ensure you are receiving the correct rate.

Regional and Seniority Differences

While the minimum wage is a national floor, actual pay can vary by region and sector. For example, London often sees higher wages due to the cost of living, and certain industries (like hospitality or retail) may offer more than the minimum. Seniority also matters: as you gain experience, you may move above the minimum wage. The salary data on this site shows median full-time pay for all ages is around £39,039 gross per year, which is well above the minimum.

For Scottish residents, Income Tax bands differ from England, Wales, and Northern Ireland. Scotland has a starter rate of 19%, a basic rate of 20%, and higher rates above certain thresholds. This could slightly reduce your take-home pay compared to the rest of the UK. Use our take-home calculator to see your exact net pay with Scottish rates.

Other Deductions: Pension and Student Loan

If you opt into a workplace pension (auto-enrolment), your take-home pay will be lower. Typically, you contribute 5% of qualifying earnings (above £6,240) and your employer adds 3%. For a 40-hour week at £10.85, your pension contribution might be around £60-70 per month, reducing net pay to about £1,577.

If you have a student loan (Plan 1, Plan 2, Plan 4, or Postgraduate), repayments are deducted at 9% (or 6% for postgraduate) of earnings above the relevant threshold. For Plan 2 (England/Wales), the threshold is £27,295, so at £22,568 you would not repay. But if you earn more, it would apply.

Summary

The minimum wage for 18 year olds in 2026/27 is £10.85 per hour. A full-time worker on 40 hours can expect a gross salary of £22,568 and take-home of about £1,647 per month. Part-time workers earning under £12,570 pay no tax or NI. Always check your payslip and use our salary articles for more detailed guides. For personalised calculations, visit the take-home calculator.

Frequently Asked Questions

What is the minimum wage for 18 year olds in 2026/27?

From 1 April 2026, the National Minimum Wage for workers aged 18 to 20 is £10.85 per hour. This is an increase of 85p (8.5%) from the previous rate of £10.00. The rate applies until you turn 21, when you become eligible for the National Living Wage of £12.71 per hour.

How much take-home pay will I get if I work 40 hours a week at £10.85 per hour?

Working 40 hours per week at £10.85 gives a gross annual salary of £22,568. After deducting Income Tax (about £2,000) and National Insurance (about £800), your estimated monthly take-home pay is £1,647. This calculation uses the standard tax code 1257L and assumes no pension contributions or student loan deductions.

Do I pay Income Tax on the minimum wage for 18 year olds?

You only pay Income Tax on earnings above the Personal Allowance of £12,570 per year. At £10.85 per hour, if you work fewer than 22 hours per week (full year), your gross salary stays below the threshold and you pay no Income Tax. For example, a 16-hour week gives £9,027 gross, which is entirely tax-free. If you work more hours, you pay 20% tax on the portion above £12,570.