Minimum Wage Under 18: Rates, Take-Home Pay and What Young Workers Actually Earn

Minimum Wage Under 18: What Young Workers Need to Know

From April 2026, the minimum wage under 18 rises to £8.00 per hour, an increase from £7.55. This rate applies to workers aged 16 and 17 (and those under 16 who are no longer of compulsory school age). Apprentices under 19, or those in their first year of an apprenticeship, also receive £8.00 per hour.

Gross Pay at the Under-18 Rate

For a full-time worker on 37.5 hours per week (the typical full-time week for many young employees), the annual gross salary is:

• £8.00 × 37.5 × 52 = £15,600

This is well below the median UK full-time salary of around £39,039, reflecting the fact that under-18 roles are often entry-level or part-time. The rate is set by the National Minimum Wage Regulations, as amended by the 2026 regulations.

Take-Home Pay After Tax and National Insurance

Using the standard tax code 1257L (Personal Allowance of £12,570), an under-18 worker earning £15,600 gross pays:

• Income tax: 20% on the £3,030 above the Personal Allowance = £606
• National Insurance: 8% on the same £3,030 above the primary threshold = £242
• Total deductions: £848
• Annual take-home pay: £14,752
• Monthly take-home: £1,229

These figures assume no pension contributions (auto-enrolment starts at age 22) and no student loan repayments. If the worker is under 16, no National Insurance is deducted, so take-home would be slightly higher.

Regional Differences: Scotland’s Income Tax

Scotland uses different income tax bands from the rest of the UK. For the 2026/27 tax year, the starter rate is 19% on taxable income between £12,571 and £16,537. For an under-18 worker earning £15,600 gross:

• Taxable income: £3,030 (same as rUK)
• Scottish tax: 19% on £3,030 = £575.70 (vs £606 in rUK)
• Saving: about £30 per year

So take-home pay in Scotland is approximately £14,782 annually, or £1,232 per month. The difference is small but worth noting for young workers in Scotland.

Seniority and Age Progression

The minimum wage under 18 is just one step on the ladder. As workers get older, they qualify for higher rates:

• 18–20: £10.85 per hour (from April 2026)
• 21 and over (National Living Wage): £12.71 per hour

A young worker moving from under-18 to 18–20 sees a 36% hourly increase. This progression is important for career planning and budgeting. For more detail on how different age groups compare, see our salary articles on age-based pay.

Practical Considerations for Employers and Workers

Employers must pay at least the minimum wage under 18 for all hours worked. The accommodation offset (if the employer provides living accommodation) is £11.10 per day. Workers should check their payslips to ensure the correct rate is applied. Our take-home calculator can help estimate net pay for any hours and rate.

Student Loans and Pensions

Most student loan repayment thresholds are above £15,600 (Plan 1: £26,900, Plan 2: £29,385, Plan 4: £33,795, Plan 5: £25,000). Only the Postgraduate Loan threshold (£21,000) is above, so no deductions apply. Auto-enrolment pensions do not apply to under-18s, so no pension deductions are made unless the worker opts in.

Summary

The minimum wage under 18 provides a baseline income for young workers. At £8.00 per hour, a full-time worker takes home around £1,229 per month after tax and NI. Scotland’s tax system offers a small advantage. As workers age, they move to higher minimum wage rates, significantly boosting their earning potential.

For more data on UK salaries and take-home pay, explore our salary data section.

FAQs

Do under-18 workers pay National Insurance?

Workers under 16 do not pay National Insurance. Those aged 16 or 17 pay NI on earnings above the primary threshold (£12,570 per year). At the minimum wage under 18 rate of £8.00/hour and 37.5 hours per week, gross earnings are £15,600, so NI of about £242 per year applies.

How does the minimum wage under 18 compare to the National Living Wage?

The National Living Wage for workers aged 21 and over is £12.71 per hour from April 2026. The minimum wage under 18 is £8.00 per hour – a difference of £4.71. This reflects the fact that younger workers are often in training or have fewer responsibilities, but the gap has narrowed in recent years.

Are there different rates for apprentices under 18?

Yes. The apprentice rate is also £8.00 per hour, the same as the under-18 rate. It applies to apprentices under 19, or those aged 19 and over in their first year. After the first year, the apprentice must be paid the minimum wage for their age group.