What is the accommodation offset for minimum wage?

If your employer provides free or subsidised accommodation, they can deduct up to £10.64 per day (the accommodation offset for 2026/27) from your wages for minimum wage calculation purposes.

UK Minimum Wage Calculator 2026/27

Q: What is the National Living Wage for 2026/27?

The National Living Wage for 2026/27 is £12.21 per hour for workers aged 25 and over. Workers aged 21-24 receive £11.44/hr, aged 18-20 receive £10.00/hr, and under 18s receive £7.55/hr. These rates apply from 1 April 2026.

Q: Am I entitled to minimum wage as an apprentice?

Yes. Apprentices are entitled to at least £7.55 per hour in 2026/27. This applies to apprentices under 19, or those aged 19+ in their first year of an apprenticeship. After the first year, apprentices aged 19+ receive the standard rate for their age.

Q: Does minimum wage include overtime pay?

Overtime must be paid at least at the minimum wage rate for your age band. Any premium on top of the basic rate is separate. Your average hourly pay across the pay reference period must not fall below minimum wage.

Q: What are holiday pay rules alongside minimum wage?

You are entitled to 5.6 weeks of paid holiday per year (28 days for full-time workers). Holiday pay must be calculated based on your average earnings, not just basic pay, and cannot fall below minimum wage rates.

Q: Are self-employed workers entitled to minimum wage?

Genuine self-employed workers are not entitled to the National Minimum Wage. However, if you are falsely classified as self-employed (sometimes called 'bogus self-employment'), you may have worker status and be entitled to minimum wage.

Q: When do minimum wage rates next change?

The current 2026/27 rates apply from 1 April 2026. The next scheduled review will be for April 2027, with the Low Pay Commission expected to make recommendations in autumn 2026.

Q: Is minimum wage different in Scotland and Northern Ireland?

No. The National Minimum Wage and National Living Wage rates are set by the UK Government and apply equally across England, Scotland, Wales and Northern Ireland. Some Scottish public sector employers pay the independently-set Living Wage Foundation rate voluntarily.

Quick Summary: 2026/27 Minimum Wage

Rates apply from 1 April 2026 across England, Scotland, Wales and Northern Ireland.

National Living Wage (25+)

£12.21

per hour • £25,397/year (40hr week)

Age 21–24

£11.44

per hour • £23,797/year (40hr week)

Age 18–20

£10.00

per hour • £20,800/year (40hr week)

Under 18 & Apprentice

£7.55

per hour • £15,704/year (40hr week)

National Minimum Wage Rates 2026/27

Official hourly rates for all age bands from 1 April 2026.

Age Band	Rate per Hour	Annual (40hr week)	Monthly (gross)	vs 2025/26	% Increase
National Living Wage (25+) NLW	£12.21	£25,397	£2,117	From £11.44	+6.7%
21–24 years old	£11.44	£23,797	£1,983	From £10.18	+12.4%
18–20 years old	£10.00	£20,800	£1,733	From £8.60	+16.3%
Under 18 (school leaving age+)	£7.55	£15,704	£1,309	From £6.40	+18.0%
Apprentice rate See note	£7.55	£15,704	£1,309	From £6.40	+18.0%

Annual salary calculated as: hourly rate × 40 hours × 52 weeks. The apprentice rate applies to apprentices under 19, or those aged 19+ in the first year of their apprenticeship. After year 1, apprentices aged 19+ receive the standard rate for their age band.

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What counts as pay for minimum wage purposes?

Pay for minimum wage purposes includes basic pay, performance bonuses, and most other cash payments. It does NOT include overtime premiums above basic rate, tips and gratuities paid directly to workers, benefits in kind (except accommodation), or premium rates for unsocial hours.

Monthly Take-Home Pay (2026/27)

Estimated net pay based on 40-hour working week, standard tax code 1257L, and 2026/27 NI rates. Figures are approximate.

Worker	Gross Salary	Income Tax	Employee NI	Net Monthly Pay	Net Annual Pay
NLW worker (25+)	£25,397	£2,565	£1,026	£1,817	£21,806
Age 21–24 worker	£23,797	£2,245	£898	£1,721	£20,654
Age 18–20 worker	£20,800	£1,646	£658	£1,541	£18,496
Under 18 / Apprentice	£15,704	£627	£251	£1,236	£14,826

Based on standard tax code 1257L (personal allowance £12,570), 20% basic rate income tax, Employee NI at 8% on earnings £12,570–£50,270. No student loan deductions. Pension deductions not included. Use our Take Home Pay Calculator for a personalised figure.

Salary	Employer NI (est.)	Auto-Enrolment Pension (min 3%)	Total Employer Cost
£25,397 (NLW 25+)	£3,060	£762	£29,219
£23,797 (21–24)	£2,820	£714	£27,331
£20,800 (18–20)	£2,370	£624	£23,794
£15,704 (Under 18)	£1,606	£471	£17,781

Employer NI calculated at 15% on earnings above the secondary threshold (£5,000 from April 2025). Pension based on qualifying earnings above £6,240.

Real Pay Examples

What minimum wage workers take home in 2026/27 based on 40 hours per week.

National Living Wage — Age 25+

£12.21/hr

Gross annual salary£25,397

Gross monthly£2,117

Income Tax (annual)£2,565

Employee NI (annual)£1,026

Net monthly take-home£1,817

Net annual take-home£21,806

Minimum Wage — Age 21–24

£11.44/hr

Gross annual salary£23,797

Gross monthly£1,983

Income Tax (annual)£2,245

Employee NI (annual)£898

Net monthly take-home£1,721

Net annual take-home£20,654

Minimum Wage — Age 18–20

£10.00/hr

Gross annual salary£20,800

Gross monthly£1,733

Income Tax (annual)£1,646

Employee NI (annual)£658

Net monthly take-home£1,541

Net annual take-home£18,496

Accommodation Offset & Special Rules

Special circumstances that affect minimum wage calculations.

🏠 Accommodation Offset 2026/27

Maximum daily offset£10.64

Maximum weekly offset£74.48

If employer charges moreExcess counts against NMW

If accommodation is freeOffset adds to pay

📋 Who is NOT entitled to NMW?

Genuine self-employedNot entitled

Company directors (no contract)Not entitled

Voluntary workers (charities)Not entitled

Family members (in family home)Not entitled

📄 Pay Reference Periods

Weekly paid workers1 week

Monthly paid workers1 month

Piece-rate workersPay reference period

Maximum reference period1 month

📉 Living Wage Foundation Rate

UK Living Wage (voluntary)£12.60/hr

London Living Wage (voluntary)£13.85/hr

Set byLiving Wage Foundation

Legal requirement?No (voluntary)

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Salary Sacrifice & Minimum Wage

If you participate in a salary sacrifice scheme (e.g. cycle to work, childcare vouchers), your post-sacrifice pay must still be at least the National Minimum Wage for your age. Employers cannot use salary sacrifice to take workers below minimum wage.

National Insurance at Minimum Wage

NI contributions for 2026/27 at minimum wage salary levels.

Employee NI — Class 1 (2026/27)

Below £12,570/yr0%

£12,570 – £50,270/yr8%

Above £50,270/yr2%

NLW worker NI (annual est.)£1,026

Employer NI — Secondary (2026/27)

Secondary threshold£5,000/yr

Rate above threshold15%

Employment AllowanceUp to £10,500

NLW worker cost (annual est.)£3,060

Important Dates & Deadlines

Key dates for minimum wage rates and employer compliance.

1 April 2025

Previous rates applied. NLW was £11.44/hr, Age 18-20 was £9.37/hr.

November 2025

Government announced new rates following Low Pay Commission recommendations.

1 April 2026 — NOW LIVE

New rates in force. NLW £12.21/hr (25+), 21–24 £11.44/hr, 18–20 £10.00/hr, Under 18 £7.55/hr.

6 April 2026

2026/27 tax year begins. Personal allowance remains £12,570.

Autumn 2026

Low Pay Commission expected to recommend 2027/28 rates.

1 April 2027

Next scheduled minimum wage increase. Rates TBC.

Frequently Asked Questions

Common questions about UK minimum wage rules and rights.

What is the National Living Wage for 2026/27?

The National Living Wage for 2026/27 is £12.21 per hour for workers aged 25 and over. Workers aged 21–24 receive £11.44/hr, aged 18–20 receive £10.00/hr, and under 18s receive £7.55/hr. This applies from 1 April 2026. Working 40 hours a week at NLW, this equals approximately £25,397 per year before tax.

Can my employer pay less than the minimum wage?

No. It is illegal for employers to pay workers below the National Minimum Wage or National Living Wage. HMRC enforces compliance and can fine employers up to 200% of underpayment, plus require back payment of all money owed. Repeat offenders can be publicly named and shamed by the government. Workers can report violations confidentially to HMRC.

What if I get free accommodation from my employer?

If your employer provides accommodation, they can apply the accommodation offset when calculating minimum wage. For 2026/27, the maximum offset is £10.64 per day (£74.48 per week). If your employer charges more than this for accommodation, the excess reduces your pay for NMW purposes. Free accommodation effectively increases your pay by the offset amount.

Am I entitled to minimum wage as an apprentice?

Yes. Apprentices must be paid at least £7.55 per hour in 2026/27. The apprentice rate applies to apprentices under 19, and to apprentices aged 19 or over in the first year of their apprenticeship. Once an apprentice aged 19+ completes their first year, they are entitled to the standard minimum wage rate for their age group (e.g. £10.87/hr for 19–20 year olds, £12.21/hr for 21+).

Does minimum wage include overtime pay?

Your average hourly pay across your pay reference period must not fall below the minimum wage. Overtime hours must be paid at least at the minimum wage rate. Any overtime premium above basic rate is separate. If you work overtime and this brings your average hourly rate below minimum wage, your employer must make up the difference.

What are holiday pay rules alongside minimum wage?

You are entitled to 5.6 weeks paid holiday per year (28 days for full-time workers). Holiday pay must reflect your average pay including regular overtime, commission, and other payments — not just basic pay. It cannot fall below the minimum wage rate for your age. Part-time and irregular workers accrue holiday pay proportionally.

Are self-employed workers entitled to minimum wage?

Genuinely self-employed workers are not entitled to the National Minimum Wage. However, if you are a worker (not a true business) but have been incorrectly classified as self-employed ("bogus self-employment"), you may be entitled to minimum wage. Employment tribunals and HMRC look at the reality of the working relationship, not just what a contract says.

Do zero hours contract workers get minimum wage?

Yes. Workers on zero hours contracts are entitled to minimum wage for every hour worked. Employers cannot pay below minimum wage regardless of contract type. Zero hours workers also have rights to holiday pay and, if they work regularly, may qualify as workers with additional protections. From October 2024, zero hours workers gained new rights to request a guaranteed hours contract.

When do minimum wage rates next change (April 2027)?

The current 2026/27 rates apply from 1 April 2026. The Low Pay Commission is expected to make recommendations for 2027/28 rates in autumn 2026, with the Government announcing new rates shortly after. Any new rates would come into effect from 1 April 2027. Bookmark this page — we update it as soon as rates are confirmed.

Is minimum wage different in Scotland and Northern Ireland?

No. The National Minimum Wage and National Living Wage are set by the UK Government and apply equally across England, Scotland, Wales and Northern Ireland. However, the Living Wage Foundation independently sets a higher voluntary "real living wage" rate (£12.60/hr UK, £13.85/hr London for 2026/27) which some employers choose to pay voluntarily — this has no legal force.

Do commission-only sales workers get minimum wage?

Yes, if you are a worker (not genuinely self-employed). Your employer must ensure your total pay including commission meets the minimum wage for every hour worked in the pay reference period. If commission alone does not meet minimum wage, the employer must make up the shortfall. Employers cannot use poor sales performance as a reason to pay below minimum wage.

How do I report a minimum wage violation?

You can report underpayment to HMRC via gov.uk/minimum-wage-underentitled, by phone on 0300 123 1100 (Mon–Fri 8am–6pm), or contact ACAS at acas.org.uk for free impartial advice. Reports can be made anonymously. HMRC will investigate and employers face fines of up to 200% of underpayment plus mandatory back pay. You also have the right to bring a claim at an Employment Tribunal within 3 months of underpayment.