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How much is the minimum wage?

By · Published by Everything Blog

In short

Official UK minimum pay rates are rising by 3.9% on 1 April, impacting roughly 2.3 million workers nationwide. Full-time staff aged 21 and over on standard 35-hour weeks will gain an additional £910 in gross earnings each year under the new £13.21 hourly threshold. At the same time, nearly 17,000 employers have independently opted to pay the higher Real Living Wage set by the Living Wage Foundation. Non-compliant businesses failing to meet the legal minimums commit a criminal offence and risk formal sanctions from tax authorities.

Key points

  • Employers face criminal liability and financial penalties from HMRC if they fail to distr…: Employers face criminal liability and financial penalties from HMRC if they fail to distribute the statutory wage rates.
  • Several groups remain excluded from the legal wage thresholds, including volunteers, comp…: Several groups remain excluded from the legal wage thresholds, including volunteers, company directors, and the self-employed.
  • Thousands of independent firms adhere to higher voluntary pay benchmarks reaching £15.45…: Thousands of independent firms adhere to higher voluntary pay benchmarks reaching £15.45 in London.

Sources checked by our analysis pipeline: 1

- Published

The official minimum rates of pay will rise for 2.3 million workers on 1 April.

The rate for workers aged 21 and over is called the National Living Wage, while those aged 18 to 20 are paid the National Minimum Wage. They will both go up by 3.9% next year.

The rates apply across the UK.

What is the National Living Wage rate?

From 1 April 2027, workers over 21 on the National Living Wage will be paid £13.21p per hour, up 50p from the current £12.71 an hour.

For someone working full time (35 hours a week), that means an increase of £910 to their gross annual earnings, according to the Treasury.

What is the National Minimum Wage rate?

The rate for 18 to 20-year-olds will rise to £11.27 an hour from 1 April, up from £10.85.

The minimum wage for 16 and 17-year-olds is also rising by 3.9%, increasing from £8 an hour to £8.31.

However, these figures mean, this time around, there's no progress on Labour's manifesto promise to narrow the gap in minimum wages between older and younger workers.

What is the apprentice rate and how much is it worth?

There are different rates of pay for apprentices, external depending on their age and what stage of apprenticeship they are in.

Apprentices aged 16 to 18 are entitled to the National Minimum Wage rate for that age group. This is currently £8 an hour but will rise by 3.9% to £8.31 in April.

Those aged 19, or in the first year of their apprenticeship, are paid the same amount.

But those over 19 - or who have already completed their first year - are entitled to the appropriate National Minimum Wage or National Living Wage rate for their age.

What is an apprenticeship and how much is the pay?

- Published20 August

Who doesn't qualify for the National Minimum Wage and National Living Wage?

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.

These are less than the equivalent National Minimum or Living rate.

Do employers have to pay the National Minimum Wage and National Living Wage?

Yes. 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.

If you think you are being paid the wrong amount, you can complain via the HMRC website, external.

You can also get advice from workplace experts Acas, external.

What happens if employers don't pay the right wage?

Any employer not paying the correct amount can be penalised by HMRC.

In March 2026, the government said that 389 employers had been fined around £12.6m for failing to pay staff properly, external.

They must also repay the missing £7.3m to the around 60,000 workers who were underpaid.

Firm named included the Nursery chain Busy Bees, Norwich City Football Club, Hays Travel and Costa Coffee.

What is the Real Living Wage and how much is it?

The Real Living Wage, external is an unofficial hourly rate of pay which is overseen by the Living Wage Foundation charity, who say it is set at a rate to meet the cost of living.

It increases every October.

Some firms choose to pay the Real Living Wage, but it is not mandatory.

According to the charity almost 500,000 employees working for nearly 17,000 firms receive the voluntary rate of pay.

In October 2026, the foundation said the UK rate would increase by 4.8% to £14.10 an hour, while the London Living Wage for workers in the capital would go up by 4.4% to £15.45.

The Living Wage 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.

Original source: www.bbc.co.uk

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