When is the minimum wage going up in 2026? New rates and what they mean for your take-home pay

When is the minimum wage going up in 2026?

If you're asking when is the minimum wage going up, the answer is clear: new rates take effect from 1 April 2026. The Government has accepted the Low Pay Commission's recommendations in full, meaning millions of workers will see a pay rise. But understanding the difference between your new gross hourly rate and what actually lands in your bank account is crucial.

What are the new minimum wage rates?

From April 2026, the National Living Wage (for workers aged 21 and over) rises to £12.71 per hour – an increase of 50p (4.1%) from the current £12.21. For younger workers:

• 18-20 year olds: £10.85 per hour (up 8.5% from £10.00)
• 16-17 year olds: £8.00 per hour (up 6.0% from £7.55)
• Apprentices: £8.00 per hour (up 6.0% from £7.55)

The accommodation offset – the amount employers can deduct for providing living accommodation – also rises to £11.10 per day. These figures are confirmed in The National Minimum Wage (Amendment) Regulations 2026 and published on GOV.UK.

Gross pay vs take-home pay: what deductions to expect

A full-time worker on the National Living Wage (say 37.5 hours per week) will earn roughly £24,785 a year before any deductions. But your take-home pay will be lower once Income Tax, National Insurance, pension contributions, and possibly student loan repayments are taken out.

Income Tax – The Personal Allowance remains at £12,570 for 2026/27. Anything above that is taxed at 20% (basic rate). So a NLW earner on £24,785 pays tax on about £12,215, resulting in roughly £2,443 in Income Tax.

National Insurance – Employee NI is charged at 8% on earnings between the primary threshold (around £12,570) and the upper earnings limit (about £50,270). For our NLW earner, that's roughly £977 in NI.

Pension – If you're enrolled in a workplace pension, you'll typically contribute at least 5% of your qualifying earnings (your employer adds 3%). That could reduce your take-home pay by around £800–£1,000 a year.

Student loan – If you have a Plan 2 or Plan 5 loan, repayments kick in once you earn over the threshold (e.g., £27,295 for Plan 2). Most NLW workers won't reach that, but those on higher hours or with other income might.

After all deductions, a single NLW worker with no pension or student loan might take home around £1,780 per month. But this varies – the Low Pay Commission's 2026 report shows that a single full-time worker (35 hours) sees a weekly take-home increase of just 3.3% due to frozen tax thresholds, while a couple with children on Universal Credit gets a larger boost because of the 6.2% increase in the UC standard allowance.

Why the headline rise isn't the whole story

The Low Pay Commission's report highlights that the real-world impact depends on your household situation. If you receive Universal Credit, the combined effect of the wage rise and the above-inflation increase to the UC standard allowance means your disposable income rises by more than 4.1%. But if you're a single person not on UC, the frozen tax thresholds mean you pay a higher average tax rate, so your net increase is smaller.

For example, a single person working 20 hours per week on the NLW starts paying tax and NI at that level, whereas someone working 14 hours may still be eligible for UC. The LPC's charts show that a full-time worker (35 hours) gets about £11.90 extra per week after tax and NI.

What about Scotland?

If you live in Scotland, remember that Scottish Income Tax rates and bands differ from the rest of the UK. The starter rate, basic rate, and higher rates are set by the Scottish Parliament, and the Personal Allowance is the same but the thresholds for higher rates are lower. This can mean a slightly different take-home amount for the same gross pay. Always check the latest Scottish tax bands on GOV.UK.

Looking ahead to 2027

The Low Pay Commission's remit for 2027 states that two-thirds of median hourly earnings should continue to be the key reference point for the National Living Wage. Based on current wage forecasts, the LPC estimates the 2027 NLW could be in the range of £13.02 to £13.34, with a central estimate of £13.18. That would be a further increase of 2.4% to 5.0%.

How to check your own take-home pay

Use our take-home calculator to see exactly how the new minimum wage rates affect your net income. You can adjust for pension contributions, student loans, and Scottish residency. For more context on UK salaries, browse our salary data and salary articles.

Key takeaways

• The minimum wage goes up on 1 April 2026.
• National Living Wage (21+): £12.71/hour.
• Your take-home pay depends on tax, NI, pension, and benefits.
• Frozen tax thresholds mean some workers see a smaller net gain.
• Scottish taxpayers face different Income Tax bands.

Always refer to official sources like GOV.UK for the latest rates and your own payslip for exact deductions.

Frequently Asked Questions

When does the minimum wage increase take effect in 2026?

The new National Minimum Wage and National Living Wage rates come into force on 1 April 2026. This follows the Low Pay Commission's recommendations, accepted by the Government. The rates are set out in The National Minimum Wage (Amendment) Regulations 2026.

How much will my take-home pay increase if I'm on the National Living Wage?

The increase depends on your household circumstances and deductions. For a single full-time worker (35 hours/week) on the NLW, the Low Pay Commission estimates a 3.3% rise in weekly take-home pay (about £11.90). If you receive Universal Credit, the combined effect of the wage rise and the 6.2% increase in the UC standard allowance can boost take-home pay by at least 4.2%. However, frozen tax thresholds mean some workers see a smaller net increase.

Are there different minimum wage rates for younger workers?

Yes. From April 2026, the National Living Wage applies to workers aged 21 and over at £12.71 per hour. Workers aged 18-20 receive £10.85 per hour, and those aged 16-17 (as well as apprentices) receive £8.00 per hour. These rates are set by the Low Pay Commission and are legally enforceable.