What's the Minimum Wage in 2026/27? Take-Home Pay After Tax and NI

What's the Minimum Wage in 2026/27?

If you're wondering what's the minimum wage for the 2026/27 tax year, the answer depends on your age. From April 2026, the National Living Wage for workers aged 21 and over rises to £12.71 per hour – a 4.1% increase from £12.21. For 18–20 year olds, the National Minimum Wage is £10.85 per hour, while under-18s and apprentices are entitled to £8.00 per hour.

These rates are set by the government following the Low Pay Commission’s recommendations and apply across the whole of the UK, including Scotland, Wales and Northern Ireland.

How Much Is That as a Salary?

Full-time hours are typically 37.5 to 40 hours per week. At 37.5 hours per week (the most common full-time pattern), a worker on the National Living Wage earns:

• Weekly gross: £476.63
• Monthly gross: £2,065.38
• Annual gross: £24,784.50

At 40 hours per week, the annual gross rises to £26,436.80.

What You Actually Take Home After Tax and NI

Your take-home pay is what lands in your bank after deductions. For 2026/27, the key deductions are:

• Income Tax: Everyone gets a Personal Allowance of £12,570. Earnings above that are taxed at 20% (basic rate) up to £50,270.
• National Insurance: Employee NI is charged at 8% on earnings between £12,570 and £50,270, then 2% above that.

For a full-time NLW worker (37.5 hours) in England, Wales and Northern Ireland:

• Income Tax: £2,443 per year
• National Insurance: £977 per year
• Take-home pay: £21,364 per year, or £1,780 per month

That works out at about £10.96 per hour after deductions – you keep roughly 86p of every £1 you earn.

Scotland: A Slightly Different Picture

Scotland uses its own Income Tax bands. For 2026/27, the starter rate is 19% on the first £3,967 of taxable income, followed by the basic rate of 20% up to £29,526. This means a minimum wage worker in Scotland pays about £40 less in Income Tax than someone in the rest of the UK.

• Income Tax (Scotland): £2,403 per year
• Take-home pay (Scotland): £21,404 per year, or £1,784 per month

What About Pensions and Student Loans?

Most workers are automatically enrolled into a workplace pension. The minimum contribution is 5% of qualifying earnings (you pay 5%, your employer pays 3%). On the NLW, that reduces take-home pay to about £20,623 per year in rUK (or £20,662 in Scotland).

Student loan repayments depend on your plan. At 37.5 hours per week on the NLW, you are below the thresholds for Plans 1, 2 and 4, so no repayments are due. Plan 5 (threshold £25,000) only bites if you work 40 hours per week, costing about £129 per year. Postgraduate Loan repayments (6% above £21,000) would apply at both 37.5 and 40 hours.

How Take-Home Pay Is Calculated

Your employer calculates deductions through PAYE (Pay As You Earn). The process is:

1. Start with your gross pay (hourly rate × hours worked).
2. Deduct any salary sacrifice (e.g., pension contributions, cycle-to-work schemes).
3. Calculate Income Tax on the remaining amount, using your tax code (standard 1257L gives £12,570 tax-free).
4. Calculate National Insurance on earnings above £12,570.
5. Deduct any student loan repayments.
6. The result is your take-home pay.

For a detailed breakdown of your own salary, use our take-home calculator. It works out Income Tax, NI, pension and student loans for any gross salary.

Why Knowing Your Take-Home Matters

Understanding the difference between gross salary and net pay helps you budget, compare job offers, and plan for the future. The minimum wage is a legal floor, but many roles pay more. For context, the UK median full-time gross annual pay is around £39,039 – that’s about £2,636 per month take-home.

For more articles on salary and deductions, visit our salary articles.

Summary of 2026/27 Minimum Wage Rates

Age group	Hourly rate	Annual gross (37.5 hrs/wk)	Monthly take-home (rUK)
21+ (NLW)	£12.71	£24,785	£1,780
18–20	£10.85	£21,158	£1,563
Under 18 / apprentice	£8.00	£15,600	£1,229

Figures assume standard tax code, no pension or student loan. Scotland take-home is slightly higher.

Frequently Asked Questions

What is the minimum wage in 2026/27? From April 2026, the National Living Wage for workers aged 21 and over is £12.71 per hour. The National Minimum Wage for 18–20 year olds is £10.85 per hour, and for under-18s and apprentices it is £8.00 per hour. These rates apply across the UK.

How much take-home pay does a full-time minimum wage worker get? A full-time worker on the National Living Wage (37.5 hours per week) earns about £24,785 gross per year. After Income Tax and National Insurance, take-home pay is roughly £21,364 per year (£1,780 per month) in England, Wales and Northern Ireland. In Scotland, take-home is slightly higher at about £21,404 per year due to the starter rate of Income Tax.

Does the minimum wage differ in Scotland? The hourly minimum wage rates are the same across the UK. However, Scotland sets its own Income Tax bands. For a minimum wage worker, Scotland’s 19% starter rate on the first £3,967 of taxable income means you pay about £40 less in tax per year compared to the rest of the UK, resulting in a slightly higher take-home pay.