Key takeaways
- From 1 April 2026 the National Living Wage for workers aged 21 and over is £12.71 an hour.
- Workers aged 18 to 20 get at least £10.85, and under-18s and apprentices in their first year at least £8.00.
- The minimum wage is checked over each pay reference period, so deductions, unpaid working time and salary sacrifice can push pay below the legal rate.
- Employers who underpay must repay arrears at current rates and can face penalties of 200% of the arrears and public naming.
- Salary sacrifice cannot take pay below the minimum wage.
The minimum wage rates went up on 1 April 2026. Paying the right hourly rate is only part of compliance: HMRC enforces the rules and most underpayments come from deductions, unpaid time or pay arrangements, not a deliberately low rate. This guide covers the rates and the traps.
Minimum wage rates from 1 April 2026
| Category | April 2025 rate | April 2026 rate | Increase |
|---|---|---|---|
| National Living Wage (21 and over) | £12.21 | £12.71 | 4.1% |
| 18 to 20 | £10.00 | £10.85 | 8.5% |
| Under 18 | £7.55 | £8.00 | 6.0% |
| Apprentice rate | £7.55 | £8.00 | 6.0% |
The apprentice rate applies to apprentices under 19, and to apprentices aged 19 or over in the first year of their apprenticeship. After that, they are entitled to the rate for their age.
What it means in annual terms
A full-time worker aged 21 or over on 37.5 hours a week earns at least about £24,785 a year at £12.71 an hour (£476.63 a week).
Who is entitled
The minimum wage applies to workers, including part-time, casual, agency and temporary workers, and those on zero-hours contracts. It does not apply to the genuinely self-employed, company directors who are not employed under a contract, volunteers, or certain family members living and working in a family business.
How compliance is checked
Minimum wage is checked over each pay reference period, the period for which the worker is paid (a week or a month). For each period:
- Work out the pay that counts, starting with gross pay and making the permitted additions and deductions.
- Work out the hours that count, which depend on the type of work (salaried hours, time work, output work or unmeasured work).
- Divide pay by hours. The result must be at least the minimum rate for the worker’s age at the start of the period.
Pay that does not count
These do not count towards minimum wage pay:
- tips, gratuities and service charges
- premium pay for overtime or shift work (only the basic element counts)
- most benefits in kind, except living accommodation within the accommodation offset
- expenses repaid to the worker
Deductions and payments that reduce pay
Deductions for the employer’s own benefit, or payments the worker must make for things connected with the job, reduce minimum wage pay. Common examples include:
- charges for uniforms or tools required for the job, even if deducted from pay
- deductions for parking, meals or training costs that the worker must pay
- salary sacrifice arrangements; pay after the sacrifice must still meet the minimum wage
Working time that must be paid
Time workers must be paid for includes:
- time spent on training required by the employer
- travelling between assignments during the working day (but not normal commuting)
- time spent waiting or on call at or near the workplace when required to be available
- time spent on security checks, putting on uniforms or opening and closing procedures, where required
Accommodation offset
If an employer provides accommodation, it can count up to the accommodation offset towards minimum wage pay. The offset is set by the Low Pay Commission and rises each April; check the current daily and weekly amounts on GOV.UK before relying on it.
Penalties for underpaying
If HMRC finds a worker has been underpaid, the employer must:
- pay the arrears to the worker, calculated at the current rate if it is higher than the rate at the time
- pay a penalty of 200% of the arrears (halved if paid within 14 days), up to £20,000 per worker
- face being named publicly by the government
Deliberate failure to pay is also a criminal offence. Employers should keep records of hours and pay for at least six years.
Planning ahead
The Low Pay Commission recommends new rates each autumn, and the government announces them at the Budget for the following April. The government’s policy is for the 18 to 20 rate to move towards the full National Living Wage over time. Employers should review salaried staff close to the minimum each year: frozen salaries can fall below the minimum wage once rates rise, especially where staff work extra hours.
Frequently asked questions
What is the minimum wage in April 2026?
£12.71 an hour for workers aged 21 and over, £10.85 for 18 to 20-year-olds, and £8.00 for under-18s and apprentices in the apprentice rate category.
When did the 2026 minimum wage rates start?
On 1 April 2026.
Can salary sacrifice take pay below the minimum wage?
No. Pay after salary sacrifice must still be at least the minimum wage for the hours worked.
Do tips count towards the minimum wage?
No. Tips, gratuities and service charges cannot be used to meet minimum wage pay.
What happens if an employer underpays the minimum wage?
The employer must repay the arrears at current rates, pay a penalty of up to 200% of the arrears, and may be publicly named.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance in October 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.