The UK government has confirmed the National Minimum Wage (NMW) and National Living Wage (NLW) rates that will apply from 1 April 2026. These new statutory rates affect all employers and should be built into payroll planning for the 2026/27 tax year.
This guide summarises the new rates, explains what they mean in practice, and outlines the steps employers should take before April 2026.
2026 Minimum Wage Rates at a Glance
From 1 April 2026, the following minimum hourly rates will apply:
| Category | Current Rate | Rate from 1 April 2026 |
|---|---|---|
| National Living Wage (21 and over) | £12.21 | £12.71 |
| 18–20 Minimum Wage | £10.00 | £10.85 |
| 16–17 Minimum Wage | £7.55 | £8.00 |
| Apprentice Minimum Wage | £7.55 | £8.00 |
Definitions for clarity
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National Living Wage: The legal minimum for workers aged 21 and over.
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National Minimum Wage (18–20): Applies to workers aged 18, 19, and 20.
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National Minimum Wage (16–17): Applies to employees aged 16 and 17.
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Apprentice Rate: Applies to apprentices aged under 19, or 19+ in the first year of their apprenticeship.
These definitions help ensure correct application of the new rates and reduce compliance risks.
Impact of the April 2026 Minimum Wage Changes
Increase in payroll costs
The new National Living Wage of £12.71 will increase the annual cost of a full-time employee (37.5 hours per week) by approximately £900 per year in gross pay.
Greater increases for younger workers and apprentices
The most significant percentage rises apply to the 18–20 rate and the apprentice rate. Employers with a younger workforce—such as retail, hospitality, leisure, care and entry-level services—should expect higher overall cost increases.
Budgeting for 2026/27
Employers should incorporate these updated statutory rates into wage forecasting, staffing plans, cost reviews and future contract pricing.
Employer Actions Required Before April 2026
1. Identify affected employees
Review all employees paid at or near the minimum wage to determine who will require an uplift. Include staff who will move into a higher age band before April 2026.
2. Update payroll software and systems
Ensure payroll systems, timesheets and budgeting tools are updated with the new rates for the first pay period in April 2026.
3. Review rotas, staffing models and budgets
Managers should understand how the new minimum wage affects labour costs, overtime, variable hours and seasonal staffing.
4. Communicate upcoming changes
Share clear information with employees and managers. Communicating early helps set expectations and reduce pay-related queries.
5. Review wider employment cost changes
Consider the minimum wage alongside other 2026/27 factors, such as National Insurance changes, pension adjustments or statutory benefit updates.
Summary: Minimum Wage Changes for 2026
From pay reference periods beginning on or after 1 April 2026, all employers must pay the new statutory minimum wage rates. The adult rate increases to £12.71, with larger rises for younger workers and apprentices. Employers should update payroll systems, review budgets and communicate the changes well in advance.