Minimum Wage Salary 2026/27: Annual, Monthly and Take-Home Pay
Written by James Whitfield · Last reviewed 19 October 2026 · Checked against GOV.UK rates from 1 April 2026.
The minimum wage is set per hour, but most people think in salaries and monthly pay. These tables turn the April 2026 rates into yearly, monthly and take-home figures for common working weeks, and explain how the minimum wage limits salary sacrifice.
From 1 April 2026 the National Living Wage is £12.71 an hour for workers aged 21 and over.1 On a 37.5-hour week that is £24,784.50 a year, or £2,065.38 a month. After Income Tax and National Insurance in England, Wales or Northern Ireland, take-home pay is about £21,364 a year (£1,780 a month).34 A 40-hour week pays £26,436.80 a year.
- 21 and over (National Living Wage): £12.71 an hour.1
- 18 to 20: £10.85 an hour.1
- Under 18 and apprentices: £8.00 an hour; apprentices aged 19 or over who have finished their first year get the rate for their age.1
- Pay is checked over each pay reference period, which is never longer than a calendar month.2
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National Living Wage (21 and over): pay by hours
| Hours a week | A year | A month | Take-home a year | Take-home a month |
|---|---|---|---|---|
| 16 | £10,574.72 | £881.23 | £10,574.72 | £881.23 |
| 20 | £13,218.40 | £1,101.53 | £13,036.85 | £1,086.40 |
| 30 | £19,827.60 | £1,652.30 | £17,795.47 | £1,482.96 |
| 35 | £23,132.20 | £1,927.68 | £20,174.78 | £1,681.23 |
| 37.5 | £24,784.50 | £2,065.38 | £21,364.44 | £1,780.37 |
| 40 | £26,436.80 | £2,203.07 | £22,554.10 | £1,879.51 |
£12.71 × hours × 52 weeks.1 Take-home uses 2026/27 England, Wales and Northern Ireland Income Tax (20% above £12,570) and employee NI (8% above £12,570), worked out on annual figures, a standard tax code and no pension or student loan deductions.34 Payroll works out tax and NI each pay period, so actual payslips can differ by a few pounds.
Worked example: 37.5 hours a week at £12.71
| Gross pay: £12.71 × 37.5 × 52 | £24,784.50 |
| Income Tax: (£24,784.50 − £12,570) × 20% | −£2,442.90 |
| Employee NI: (£24,784.50 − £12,570) × 8% | −£977.16 |
| Take-home pay a year (£1,780.37 a month) | £21,364.44 |
A workplace pension under auto-enrolment would usually come out of this as well. How that deduction is made matters: see below.
Under-21 and apprentice rates: pay by hours
| Rate | 30 hours, a year | 37.5 hours, a year | 40 hours, a year |
|---|---|---|---|
| 18 to 20: £10.85 | £16,926.00 | £21,157.50 | £22,568.00 |
| Under 18 and apprentices: £8.00 | £12,480.00 | £15,600.00 | £16,640.00 |
Rate × hours × 52 weeks.1 On £8.00 for 30 hours a week the pay is below £12,570, so no Income Tax or employee NI is due on that job.34
How to work out minimum wage pay for your hours
- Find your rate for your age, or the apprentice rate.1
- Multiply by your weekly hours for weekly pay, then by 52 for a year; divide the yearly figure by 12 for a monthly salary.
- Check each pay period: divide what you are paid for the period by the hours you worked in it. The result must be at least your rate.2
- Work backwards from a salary: divide the annual salary by (weekly hours × 52). £23,000 on 37.5 hours is £11.79 an hour, below the £12.71 rate for someone aged 21 or over.
Minimum wage and salary sacrifice
Salary sacrifice reduces your pay, rather than being a deduction from it, so the sacrificed amount counts against the minimum wage.2 An arrangement must not take your cash earnings below the minimum wage, and employers should cap sacrifices to stop that happening.5 At exactly the National Living Wage there is no room for a sacrifice at all.
Ordinary deductions are different. Income Tax, National Insurance, student loan repayments and a pension contribution taken from your pay do not reduce your pay for minimum wage purposes.2 That is why someone on the minimum wage can still pay into a workplace pension through net pay or relief at source, but cannot do it by salary sacrifice.
Earning a little above the minimum? How much can you salary sacrifice works out the headroom, and salary sacrifice and the minimum wage covers employers' duties.
Frequently asked questions
What is the minimum wage annual salary for 2026/27?
At the £12.71 National Living Wage for workers aged 21 and over, a 37.5-hour week over 52 weeks is £24,784.50 a year (about £2,065.38 a month), and a 40-hour week is £26,436.80 (about £2,203.07 a month).
What are the minimum wage rates from 1 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. Apprentices aged 19 or over who have finished the first year of their apprenticeship get the rate for their age.
What is the take-home pay on minimum wage full time?
About £21,364 a year, or £1,780 a month, for 37.5 hours a week at £12.71 in England, Wales or Northern Ireland, after £2,442.90 Income Tax and £977.16 National Insurance, with a standard tax code and no pension or student loan deductions.
Can salary sacrifice take my pay below the minimum wage?
No. Salary sacrifice reduces your pay for minimum wage purposes, and an arrangement must not take your cash earnings below the minimum wage. Tax, National Insurance, student loan and ordinary pension deductions do not count against it.
How is minimum wage checked for monthly-paid staff?
Over each pay reference period, which is the period a payment covers and is never more than a calendar month. Your pay for that period, divided by the hours you worked in it, must be at least your minimum wage rate.
This guide is general information, not legal or tax advice. Rates are those in force from 1 April 2026.
Sources & references
Every headline figure in this guide is checked against the official HMRC and GOV.UK pages below and reflects the confirmed 2026/27 tax year. Each link opens the relevant official page in a new tab.
- National Minimum Wage and National Living Wage rates ↗ https://www.gov.uk/national-minimum-wage-rates
- Calculating the minimum wage: salary sacrifice and deductions ↗ https://www.gov.uk/guidance/calculating-the-minimum-wage/calculating-the-minimum-wage
- Income Tax rates and Personal Allowances ↗ https://www.gov.uk/income-tax-rates
- National Insurance rates and categories ↗ https://www.gov.uk/national-insurance-rates-letters
- Salary sacrifice and the effects on PAYE (HMRC) ↗ https://www.gov.uk/guidance/salary-sacrifice-and-the-effects-on-paye