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Take Home Wage Guide
National Minimum Wage Explained
The National Minimum Wage is the lowest hourly rate an employer can legally pay a worker in the UK, set by government and enforced by HMRC. From 1 April 2026 it is £12.71 an hour at 21 and over, £10.85 at 18 to 20, and £8.00 for under-18s and apprentices, published on GOV.UK.
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Minimum wage vs Living Wage vs Real Living Wage
Three different things get called a living wage, and only two of them are law.
| Name | What it is | Legally enforceable |
|---|---|---|
| National Minimum Wage | Statutory hourly minimum for workers under 21 and for apprentices | Yes |
| National Living Wage | The top band of the same statutory scheme, for workers aged 21 and over | Yes |
| Real Living Wage | A voluntary rate calculated by the Living Wage Foundation and paid by accredited employers | No |
The National Living Wage is not a separate law. It is the name given to the highest age band of the National Minimum Wage, currently £12.71 an hour for workers aged 21 and over, set out on GOV.UK. Everything below that age, plus the apprentice rate, keeps the National Minimum Wage label.
The real Living Wage is different in kind: it is an independent, voluntary rate based on an estimate of living costs, with a separate higher rate for London. Employers choose to sign up to it. If your employer advertises the real Living Wage but pays below it, that is a matter between you and them; if they pay below the statutory rate for your age, that is a breach of the law and HMRC can act. Check which one your contract actually promises.
Who is entitled
Almost everyone who works for an employer is entitled. That includes part-time and full-time staff, casual and zero-hours workers, agency workers, piece-rate workers, apprentices, trainees, staff on probation, and workers on maternity, paternity or adoption leave when they return.
The rate depends on your age on the day the work is done, using the rates on GOV.UK:
- 21 and over: £12.71 (National Living Wage)
- 18 to 20: £10.85
- Under 18, above school leaving age: £8.00
- Apprentice, if under 19 or in the first year of the apprenticeship: £8.00
An apprentice who is 19 or over and has completed the first year moves onto the rate for their age. When you have a birthday that moves you into a higher band, the new rate applies from the start of the next full pay reference period, not from the birthday itself.
The main groups outside the scheme are the genuinely self-employed, company directors with no employment contract, volunteers and voluntary workers, and people on certain government-backed employment programmes. Being called a contractor in a contract does not settle it: what matters is how the work is actually done and controlled.
What counts as pay
Minimum wage compliance is measured on an average hourly rate across a pay reference period, normally a week or a month, not on each hour in isolation. Take the pay that counts for the period and divide it by the hours worked in that period.
What counts towards the minimum wage: basic pay, and bonuses, commission and incentive payments. What does not count: tips and service charges, whether paid in cash or through the till; premium elements of overtime and shift pay; expenses; and most allowances such as an on-call or attendance allowance.
Deductions can also push you below the minimum. Money taken for something that is for your employer’s benefit, for example a uniform, tools, safety equipment or training you are required to buy, reduces your pay for minimum wage purposes. So does a charge for transport to work that the employer requires. Deductions genuinely for your own benefit, such as a pension contribution or union subscription, do not.
Hours matter as much as pay. Time spent training, travelling between assignments, waiting at the workplace to start and time at the workplace on a sleep-in shift may all count as working time. If you are paid by the piece, your employer must use the fair estimate scheme or pay the minimum for hours worked.
Accommodation is the one exception where an employer can offset a limited amount, under the accommodation offset rules on GOV.UK.
Underpaid? (ACAS, HMRC)
Start with the arithmetic, because most underpayment is accidental: total the pay that counts for one pay period, divide it by the hours worked, and compare the result with the rate for your age at the time. Keep payslips, rotas and any messages about hours.
Next, raise it with your employer in writing. Say which pay periods are affected, what you were paid, what the rate should have been, and ask for the arrears. Many employers correct a misapplied age band or an unlawful uniform deduction at this point.
If that does not work, Acas gives free, confidential advice on pay and can offer early conciliation before any tribunal claim.
To have it enforced, report it to HMRC. Complaints can be made online and can be made anonymously. HMRC can require the employer to pay arrears at current rates, impose a financial penalty, and refer the employer for public naming.
You can also bring a claim to an employment tribunal for unlawful deduction from wages, but the time limits are short, normally three months less one day from the last underpayment, so get advice before you choose a route. It is unlawful for an employer to dismiss you or treat you badly for asking about the minimum wage.
Underpayment often comes down to unpaid working time rather than the headline rate, so check that travel between jobs, handover and mandatory training are all being paid.
Frequently asked questions
What's the minimum wage in the UK in 2026?
The minimum wage in the UK in 2026 is £12.71 an hour for workers aged 21 and over, from 1 April 2026. Workers aged 18 to 20 get £10.85 an hour, and under-18s and apprentices get £8.00. The same rates apply in England, Scotland, Wales and Northern Ireland, and are published on GOV.UK.
What is the minimum wage for 40 hours a week?
At £12.71 an hour, 40 hours a week is £508.40 gross, or £26,436.80 over 52 weeks. For an 18 to 20 year old on £10.85 it is £434.00 a week and £22,568.00 a year. At the £8.00 rate for under-18s and apprentices it is £320.00 a week and £16,640.00 a year. Those are gross figures, before deductions.
Is 25k a low salary in the UK?
£25,000 is only marginally above full-time minimum wage pay. At the £12.71 National Living Wage, 37.5 hours a week for 52 weeks comes to £24,784.50, so £25,000 is £215.50 more, about £12.82 an hour. After Income Tax of £2,486.00 and National Insurance of £994.40, £25,000 leaves £21,519.60 a year, roughly £1,793 a month.
What's the difference between minimum wage and National Living Wage?
There is no legal difference: the National Living Wage is simply the name for the highest age band of the National Minimum Wage, the £12.71 rate for workers aged 21 and over from 1 April 2026. Rates for younger workers and apprentices are called the National Minimum Wage. Both are enforced by HMRC under the same legislation.
What will the minimum wage be in 2026 in the UK per hour?
From 1 April 2026 the minimum wage in the UK is £12.71 per hour for anyone aged 21 or over. The 18 to 20 rate is £10.85 per hour. Under-18s who are above school leaving age, and apprentices under 19 or in their first year, get £8.00 per hour. See GOV.UK for the official table.
How much is 40 hours a week minimum wage?
Forty hours a week at the current £12.71 rate is £508.40 gross a week and £26,436.80 a year over 52 weeks, about £2,203 a month. Take-home is lower: after £2,773.36 Income Tax and £1,109.34 National Insurance, it comes to £22,554.10 a year, or £1,879.51 a month, before any workplace pension contribution.
What's the National Minimum Wage for over 25s?
Workers over 25 get the National Living Wage of £12.71 an hour from 1 April 2026, the same rate as everyone aged 21 and over. There is no separate over-25 band in the current rates: the top band starts at 21. So a 26-year-old, a 40-year-old and a 21-year-old are all entitled to the same £12.71 minimum.
What will be the National Living Wage in 2026?
The National Living Wage is £12.71 an hour from 1 April 2026, up from £12.21. It applies to every worker aged 21 and over, across the whole UK, and runs until 31 March 2027. It is a legal minimum enforced by HMRC, and it is separate from the voluntary real Living Wage set by the Living Wage Foundation.
Sources
Related
Estimates only, not financial or tax advice. Rates from GOV.UK; check your payslip and HMRC for your own tax code.