How much is the minimum wage?
What are the National Minimum Wage and the National Living Wage, and how much are they worth?
Key points
- From 1 April 2026, the National Living Wage for workers aged 21 and over is £12.71 an hour.
- The rate for 18 to 20-year-olds rises to £10.85 an hour, with a separate rate to be scrapped eventually.
- In March 2026, 389 employers were fined about £12.6m for failing to pay staff properly.
The UK's minimum wage rates have changed from 1 April 2026. Workers aged 21 and over on the National Living Wage now earn £12.71 an hour, 50p more than in 2025. For a full-time worker on 37.5 hours a week, this means £24,784.50 a year, an increase of £900.
The National Minimum Wage for 18 to 20-year-olds has risen to £10.85 an hour, giving a full-time worker an extra £1,500 a year. The government said it aims to eventually remove this separate rate and have one rate for all adults. The minimum wage for 16 and 17-year-olds is now £8 an hour.
Who is not covered
Some workers do not qualify for either the National Minimum Wage or the National Living Wage. This includes the self-employed, company directors, volunteers, members of the armed forces and prisoners. People with disabilities or in long-term unemployment who take part in government work programmes are paid fixed amounts at different stages of the scheme, which are less than the equivalent National Minimum or Living rate.
The government said its goal is to eventually scrap this separate rate for 18 to 20-year-olds, and have one rate for all adults.
— the government
Enforcement and fines
It is a criminal offence for employers not to pay the correct National Minimum and Living Wages to eligible employees. The rates apply even if workers are not paid by the hour. In March 2026, the government said 389 employers had been fined around £12.6m for failing to pay staff properly. They must also repay £7.3m to about 60,000 workers who were underpaid. Firms named included Busy Bees, Norwich City Football Club, Hays Travel and Costa Coffee.
Real Living Wage
The Real Living Wage is an unofficial hourly rate overseen by the Living Wage Foundation charity, which says it is set to meet the cost of living. Some firms choose to pay it, but it is not mandatory. According to the charity, almost 500,000 employees working for nearly 17,000 firms receive the voluntary rate. In October 2026, the foundation said the UK rate would increase by 4.8% to £14.10 an hour, while the London Living Wage would go up by 4.4% to £15.45. The foundation says the rate is worth over £2,700 more per year than the legal minimum wage in the UK, and over £5,300 more in London.
