UK Minimum Wage 2026/27: National Living Wage £12.71 & Age Bands
The National Living Wage is £12.71 an hour in 2026/27 for everyone aged 21 and over — the legal minimum for almost all UK workers, with lower National Minimum Wage rates for 18–20s, under-18s and apprentices. But the headline rate is only part of the picture: the accommodation offset, what counts towards minimum wage pay, unpaid working time and unlawful deductions all affect whether you are actually being paid the minimum. This guide covers the full age bands, the offset, enforcement by HMRC, and how the hourly rate converts to an annual salary.
The minimum wage has four tiers. The National Living Wage covers everyone aged 21 and over; younger workers and apprentices get lower National Minimum Wage rates.
Band
Hourly rate
National Living Wage (21+)
£12.71
18 to 20
Lower NMW rate (set annually)
Under 18 (above school age)
Lower NMW rate (set annually)
Apprentice
Apprentice rate (set annually)
The apprentice rate applies to apprentices under 19, or those 19 and over in the first year of their apprenticeship. After the first year, apprentices aged 19+ move to the rate for their age. Rates normally rise on 1 April; check gov.uk for the exact 18–20, under-18 and apprentice figures.
What Counts Towards Minimum Wage Pay
Minimum wage pay is gross pay before tax, divided by the hours worked. Crucially, several things do not count or can pull your effective rate below the minimum:
Tips do not count — they must be paid on top under separate tipping rules.
Overtime and shift premiums above the basic rate do not count towards the minimum.
Deductions for the employer's benefit — tools, uniforms, till shortages — reduce minimum wage pay.
Unpaid working time — travel between jobs, mandatory training, opening up or closing down — must be counted as hours worked.
These are the most common ways well-meaning employers accidentally underpay, so it is worth checking your real hourly rate carefully.
The Accommodation Offset
Accommodation is the only benefit in kind that can count towards the minimum wage. Where an employer provides living accommodation, a limited daily amount — the accommodation offset — can be included in minimum wage pay, subject to a daily and weekly cap set each year.
If the employer charges more than the offset for accommodation, the excess effectively reduces pay and can push it below the minimum wage, which is unlawful. Meals, uniforms, transport and other perks never count towards the minimum.
Who Is Covered
Almost all workers are entitled to the minimum wage — including part-time, casual, agency and zero-hours workers, and those on probation. There is no small-business exemption and no lawful unpaid “trial shift” where real work is done.
The main exclusions are the genuinely self-employed, company directors without an employment contract, charity volunteers, and certain family members living and working in the employer's home. Misclassifying an employee as self-employed to dodge the minimum wage is unlawful.
Enforcement and Penalties
HMRC enforces the minimum wage. Where an employer underpays, HMRC can:
order repayment of arrears, calculated at current rates (often more than the original shortfall);
impose a penalty of up to 200% of the underpayment, subject to a cap;
publicly “name and shame” the employer; and
refer the most serious cases for criminal prosecution.
Workers can report underpayment to HMRC confidentially, and HMRC also runs targeted, risk-based investigations across sectors with a history of non-compliance.
Annual Salary Equivalent
The minimum wage is an hourly floor, but it is useful to see it as an annual figure. At £12.71 an hour:
Weekly hours
Approx. annual gross
37.5 hours
~£24,784
40 hours
~£26,437
Part-time or variable-hours workers earn proportionally less, but their hourly rate must still meet the minimum. Check your take-home pay at the minimum wage with the take-home pay calculator.
The headline rate is the National Living Wage of £12.71 an hour, which applies to all workers aged 21 and over. Younger workers and apprentices have lower National Minimum Wage rates. The minimum wage is the absolute legal floor for hourly pay — every employer must pay at least this for every hour worked, and there is no exemption for small businesses, probation periods or trial shifts. The rates normally rise each April, recommended by the independent Low Pay Commission.
What are the minimum wage age bands?
There are four bands in 2026/27: the National Living Wage of £12.71 for workers aged 21 and over; a lower rate for 18 to 20-year-olds; an even lower rate for workers under 18 who are above compulsory school age; and the apprentice rate. The apprentice rate applies to apprentices under 19, or those 19 and over in the first year of their apprenticeship. Once an apprentice aged 19 or over completes their first year, they move on to the rate for their age. The exact 18–20, under-18 and apprentice figures are set each year, so check gov.uk for the current amounts.
What is the accommodation offset?
If an employer provides living accommodation, they can count a limited daily amount towards minimum wage pay — this is the accommodation offset. It is the only benefit in kind that can count towards the minimum wage; meals, uniforms, transport and other perks cannot. The offset has a daily and weekly cap set each year, and charging an employee more than the offset for accommodation can effectively push their pay below the minimum wage, which is unlawful. The rules are strict precisely because accommodation deductions are a common source of underpayment.
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What counts towards minimum wage pay?
Minimum wage pay is your gross pay before tax, including basic salary and some bonuses and incentive payments, divided by the hours worked. It does not include tips and gratuities (which must be paid on top under separate tipping rules), most allowances, premium rates for overtime or shift work above the basic rate, or expenses. Deductions for items that benefit the employer — such as tools, uniforms or till shortages — reduce minimum wage pay and can cause underpayment. Unpaid working time, such as travel between jobs, mandatory training or time spent opening up, must also be counted.
Does the minimum wage apply to all workers?
Almost all workers are covered, including part-time, casual, agency and zero-hours workers, and those on probation. There is no small-business exemption and no lawful "trial shift" that escapes the minimum wage if real work is done. The main people not entitled are the genuinely self-employed, company directors without a contract of employment, volunteers for charities, and family members living in the employer's home who share in the work and the household. Misclassifying an employee as self-employed to avoid the minimum wage is unlawful.
How is the minimum wage enforced?
HMRC enforces the National Minimum Wage and National Living Wage. If an employer underpays, HMRC can order them to repay the arrears to workers (calculated at current rates, which can exceed the historic shortfall), issue a penalty of up to 200% of the underpayment subject to a cap, and refer serious cases for criminal prosecution. The government also operates a "naming and shaming" scheme that publicly lists employers found to have underpaid. Workers can report underpayment to HMRC confidentially, and HMRC also carries out targeted and risk-based investigations.
What should I do if I am paid below the minimum wage?
First, check your average hourly rate by dividing your gross pay for a pay reference period by the hours you actually worked, including unpaid travel between assignments, training and opening or closing time. If it falls below your age band's rate, raise it with your employer in writing, as it may be an error such as an unlawful deduction. If it is not resolved, you can complain to HMRC, which can investigate and recover arrears on your behalf, or bring a claim to an employment tribunal. Complaints to HMRC can be made anonymously.
Do apprentices get the minimum wage?
Yes, but at the lower apprentice rate if they are under 19, or 19 and over and in the first year of their apprenticeship. Apprentices must be paid for all the time they spend training as well as working. Once an apprentice aged 19 or over finishes the first year, they are entitled to the standard National Minimum Wage rate for their age — so a 21-year-old in their second year of an apprenticeship is entitled to the full £12.71 National Living Wage. Employers sometimes get this transition wrong, which is a common cause of apprentice underpayment.
How does the minimum wage convert to an annual salary?
A full-time worker on 37.5 hours a week earning the £12.71 National Living Wage receives about £24,784 a year before tax (£12.71 × 37.5 × 52). On a 40-hour week the figure is closer to £26,437. The exact annual equivalent depends on contracted hours, holiday pay arrangements and any overtime. Remember that the minimum wage is a floor on the hourly rate, not a guaranteed salary — someone working part-time or variable hours will earn proportionally less, though their hourly rate must still meet the minimum.
When does the minimum wage change?
The National Living Wage and National Minimum Wage rates normally change on 1 April each year, following recommendations from the independent Low Pay Commission, which advises the government on the level. The Commission balances the goal of raising low pay against the risk to employment. Because the rates rise annually, employers must review pay each April, and salaried workers near the minimum can find their effective hourly rate slipping below the threshold if hours creep up — a frequent and avoidable source of unlawful underpayment.
Disclaimer: This guide reflects the 2026/27 UK National Living Wage and National Minimum Wage rules. The headline National Living Wage is £12.71, but the 18–20, under-18 and apprentice rates and the accommodation offset are set each year and change every April. Your entitlement depends on your age, hours and contract. Refer to gov.uk for the current rates.