National Minimum Wage UK 2026/27: New Rates from April 2026

The UK National Minimum Wage (NMW) and National Living Wage (NLW) are reset every April. The 2026/27 rates apply from 1 April 2026 (six days before the income tax year flips). This guide gives the current rates, explains the age bands and apprentice rules, and tells you what to check if you suspect under-payment.

The 2026/27 rates

Age band	Hourly rate from 1 April 2026
21 and over (National Living Wage)	£12.21
18 to 20	£10.00
Under 18 (school-leaving age and over)	£7.55
Apprentice (under 19, OR 19+ in first year of apprenticeship)	£7.55

(Rates as published by the Low Pay Commission for the 2026/27 cycle. Verify the current published rates on gov.uk/national-minimum-wage-rates before relying on them in any specific dispute.)

Who's covered

The NMW/NLW applies to almost every UK worker, including:

• Full-time and part-time employees.
• Casual labourers.
• Agency workers.
• Workers paid by piece, output or commission (calculated against hours worked).
• Apprentices.
• Workers paid in the form of accommodation (with specific accommodation-offset rules).

It does NOT apply to:

• Genuinely self-employed people (defined by HMRC's employment-status test, NOT by what your contract calls you).
• Volunteers (where the work is unpaid by genuine choice and the employer is a charity).
• Members of the armed forces.
• Family members working in a family business and living in the family home.
• Some company directors with no employment contract.

If your employer says you're "self-employed" but the work pattern looks employment-like (you're told when to work, supervised, paid by hour or shift, can't substitute someone else), you may legally be a worker entitled to NMW. HMRC's CEST tool gives an indicative answer.

Age band changes

You move into a new age band on your birthday. From the next pay period after your birthday, your hourly rate must reflect the higher band.

For example, if you turn 21 on 15 May 2026:

• Pay periods ending on or before 15 May: minimum £10.00 (18-20 band).
• Pay periods ending after 15 May: minimum £12.21 (21+ NLW band).

Many employers automate this - but smaller employers sometimes miss it, particularly for irregular-hours workers. Check your payslip in the period after your birthday.

Apprentice rate

The apprentice rate (£7.55) applies if either:

• You're under 19, or
• You're 19+ but in the first year of your apprenticeship.

Once you turn 19 AND have completed your first year of apprenticeship, you're entitled to the standard NMW for your age band - typically a substantial uplift.

The most common apprentice underpayment pattern: an apprentice turns 19 mid-apprenticeship, completes their first year a few months later, but the employer doesn't update the pay rate. Each month after the trigger date is an underpayment.

What counts towards NMW

The hourly rate calculation includes:

• Basic hourly pay.
• Bonus and commission paid for work done in the relevant pay reference period.
• Performance pay tied to specific work.

It does not include:

• Overtime premium (the premium element above basic - though basic pay during overtime hours does count).
• Shift premium (the premium above basic).
• Tips, gratuities and service charge (separate Tipping Act 2023 regime - see our tronc and tips guide).
• Allowances not consolidated into pay.
• Deductions for work-related items (uniform, tools, accommodation above the offset cap).

The "Pay Reference Period" is the period over which the calculation runs - typically the same as your pay frequency (weekly or monthly).

The accommodation offset

If your employer provides accommodation as part of your job, they can charge a small deduction against your pay without breaching NMW. The offset for 2026/27 is £10.66 per day (or £74.62 per week). Anything above this counts as a deduction that brings your effective pay below NMW.

Common in agriculture, hospitality, residential care, hotels.

Common patterns of NMW under-payment

1. Hours worked but not paid - clocking-in/out errors, unrecorded preparation/closing time, training time.
2. Uniform deductions - buying a uniform from the employer (or having it deducted from pay) cannot drag effective hourly rate below NMW.
3. Travel-time gaps - for domiciliary care workers, time spent travelling between clients during a shift counts as working time and must be paid.
4. Wrong age band - birthday pay-rise missed.
5. Wrong apprentice rate - kept on apprentice rate after the 19/first-year trigger.
6. Salary sacrifice tipping below NMW - pension or cycle-to-work sacrifice that reduces taxable pay below the NMW threshold.
7. Sleep-in shift active hours unpaid - see our sleep-in shift guide.

What to do if you spot an underpayment

1. Document it. Keep payslips, contract, rota, hours-worked records.
2. Calculate your effective hourly rate for each affected period: total pay (after eligible deductions) ÷ total hours worked. If it's below your age-band NMW, you're under-paid.
3. Email payroll with the calculation. Most employers correct errors quickly when shown the maths in writing.
4. If unresolved, report to HMRC. The HMRC NMW enforcement team can investigate and recover up to 6 years of arrears - longer than the two-year wages-claim limit. Report online at gov.uk/government/publications/pay-and-work-rights-helpline-and-webchat or call ACAS on 0300 123 1100.
5. Penalties to the employer. HMRC also fines the employer up to 200% of the arrears (capped at £20,000 per worker). Names of employers caught underpaying are published twice a year.

You're protected from dismissal or detriment for reporting NMW under-payment under the Employment Rights Act 1996. If you experience retaliation, contact ACAS immediately.

Class 1 NIC and NMW interaction

Working at NMW rates is below the National Insurance Primary Threshold (£12,570 annual, £241/week, £1,047.50/month) until you work substantial hours. Below the threshold, no employee NI is deducted, so your "take-home rate" is closer to the headline NMW.

For a 21-year-old working 30 hours/week at £12.21:

Weekly gross:           30 × £12.21    = £366.30
Less weekly NI threshold:               £241.00
Earnings above threshold:               £125.30
× 8% NI:                                 £10.02
Take-home (before tax):                 £356.28

Tax depends on your tax code - most workers in this band will pay £0 PAYE if the cumulative tax-free allowance accumulates faster than they earn.

Disclaimer

PayslipIQ provides automated educational guidance based on the figures you supply. It is not regulated employment-law advice. NMW enforcement and dispute resolution can be complex; for substantial back-pay claims or retaliation cases, contact ACAS, your union, or an employment solicitor.