Overview of the new UK minimum wage rates for 2026
The UK government has set updated minimum pay rates for 2026. Employers and workers need to know the new figures, who they apply to, and how to calculate pay under the change.
This article gives a clear, age-based breakdown, practical payroll steps, and a short case study showing how a small business could adjust.
What are the 2026 minimum wage rates?
From April 2026 the headline rates are set as follows. These are the statutory minimum amounts employers must pay per hour.
- Age 23 and over (National Living Wage): £12.00
- Age 21–22: £10.70
- Age 18–20: £8.70
- Under 18: £6.60
- Apprentice rate: £6.10
These rates apply to most workers on or after the effective date in April 2026. Employers must check eligibility rules for each worker.
Who is covered by the new UK minimum wage rates for 2026
The new rates cover employees and workers who qualify for the National Minimum Wage or National Living Wage. This includes full‑time, part‑time, casual and agency workers.
Exceptions can apply for certain trainees, volunteers and people on very specific government schemes. Always verify on the official government site if unsure.
How the age breakdown affects pay
Pay depends on the worker’s age on the pay reference date. Employers should check dates and keep records to avoid underpayment claims.
- If a worker turns 23 during the pay period, calculate pay using the rate that applies on the pay reference date.
- Apprentices under 19, and apprentices 19 or over in their first year, are usually paid the apprentice rate.
- Workers retained on lower historical contracts still must be brought up to the legal minimum if their current rate falls below the statutory figure.
Example calculation for a 23-year-old worker
If a 23-year-old works 35 hours in a week at the new rate of £12.00, gross weekly pay should be £420.00. Employers must check for deductions that reduce pay below the statutory minimum.
Payroll steps for employers after the announcement
Implementing the new UK minimum wage rates for 2026 requires a few practical payroll actions. Follow these steps to stay compliant.
- Update payroll software with the new hourly rates and effective date.
- Review contracts and job records to identify workers below new rates.
- Notify affected staff in writing about pay changes and the effective date.
- Check deductions (for uniforms, accommodation, etc.) to ensure net pay does not drop below the minimum.
- Keep accurate records of hours worked and payments for at least three years.
Potential business impacts and common responses
Raising the minimum wage affects labour costs. Many businesses plan for the change months ahead to manage budget and staffing.
- Some employers adjust prices modestly to cover higher payroll costs.
- Others review shift patterns, productivity, or staff training to offset pay increases.
- Many use the change as an opportunity to invest in retention and reduce turnover.
The National Living Wage applies only to workers aged 23 and over. Younger workers are paid the National Minimum Wage at age-based rates.
Short case study: A small café adjusts to the new UK minimum wage rates for 2026
Greenwich Café employs five part‑time staff: two aged 24, one aged 21, one aged 19, and one apprentice. Before April 2026 average hourly pay was £11.00 for over 23s and lower bands for younger staff.
With the new rates the owner recalculated weekly payroll. The main change was raising the two 24‑year‑olds to £12.00. Total weekly payroll rose by around £85.00. The owner chose a mixed response: slightly raise menu prices, streamline opening hours by one hour daily, and offer a new online promotions plan to increase weekday covers.
Within three months the café absorbed most of the additional cost without reducing staff hours and reported improved staff morale and slightly lower turnover.
What workers should do now
Workers should check their payslips after April 2026 to confirm the correct rate was applied. If pay appears below the statutory minimum, raise the issue with the employer in writing first.
If unresolved, workers can contact HM Revenue & Customs (HMRC) for help enforcing minimum wage rights. HMRC can investigate and require repayment of arrears.
Where to check official information
Always cross‑check rates and eligibility rules on the official government site (gov.uk) or seek professional payroll advice. Rules can include exemptions and special cases that affect particular roles.
Staying informed and preparing payroll systems before the effective date will reduce compliance risk and help businesses and workers adjust smoothly to the new UK minimum wage rates for 2026.