Understanding the minimum wage under 21: hourly rates and take-home pay

Minimum wage under 21: what you need to know

If you are a worker under 21 in the UK, your pay is protected by the National Minimum Wage (NMW). From April 2026, the rates have increased, and it is important to understand how the statutory minimum wage under 21 applies to you, especially when comparing advertised salaries with what actually lands in your bank account.

The statutory rates for under 21s

For workers aged 18 to 20, the NMW rises to £10.85 per hour – an 8.5% increase from the previous £10.00. For those under 18, the rate goes up to £8.00 per hour (a 6% rise). Apprentices also receive £8.00 per hour, but note that apprentices aged 19 or over who have completed their first year are entitled to the rate for their age group. These rates were recommended by the Low Pay Commission and accepted by the Government, as confirmed in GOV.UK guidance.

It is worth remembering that the National Living Wage (NLW) of £12.71 per hour applies only to workers aged 21 and over. So if you are 20 and turn 21 during your employment, your employer must start paying you the NLW from your 21st birthday.

Advertised salary vs take-home pay

When you see a job advert quoting an annual salary, it is usually based on a 35- or 40-hour week multiplied by the hourly rate. For example, a full-time role (35 hours) paying the 18–20 rate of £10.85 would give a gross annual salary of around £19,747. But your take-home pay will be less after deductions for income tax, National Insurance, and possibly pension contributions.

If you are on a low income, you may also be eligible for Universal Credit, which can boost your net income. The Low Pay Commission’s analysis shows that a single person working 35 hours per week on the NLW would see a 3.3% increase in weekly take-home pay after the 2026 uplift, while a couple with children could see a larger gain because of Universal Credit. For workers under 21, the interaction with benefits can be even more significant, so it is worth using the official pay guides to estimate your actual take-home pay.

Accommodation and other deductions

If your employer provides living accommodation, they can offset up to £11.10 per day from your wages (from April 2026). This means your minimum wage can be reduced by that amount for each day you live in employer-provided housing. Always check your contract and payslip to ensure deductions are lawful.

Why the rates matter

The minimum wage under 21 is designed to protect younger workers while balancing the needs of businesses. The 2026 increases are above inflation, meaning a real-terms pay rise for the lowest-paid. However, because tax thresholds are frozen, some workers may see a smaller increase in take-home pay than the headline hourly rise. The pay data section on our site breaks down how different household types are affected.

Common pitfalls

• Age confusion: If you are 20 and turn 21, your rate changes immediately. Employers sometimes forget, so keep an eye on your payslip.
• Apprentice rules: After your first year, if you are 19 or over, you must be paid the full NMW for your age, not the apprentice rate.
• Zero-hours contracts: Your hourly rate must still meet the minimum wage, even if your hours vary.

For more detailed guidance on your rights and how to check if you are being paid correctly, visit our topics page.

Summary

The minimum wage under 21 provides a legal floor for your pay. From April 2026, the rates are:

• 18–20 year olds: £10.85 per hour
• Under 18s: £8.00 per hour
• Apprentices (under 19 or first year): £8.00 per hour

Always compare advertised salaries with the statutory minimum, and remember that your take-home pay may differ due to tax, National Insurance, and benefits. Use the official GOV.UK minimum wage calculator for a personalised estimate.

If you suspect you are being underpaid, contact Acas or HMRC. Your employer is legally required to pay at least the correct minimum wage for your age and circumstances.