What is the Current Minimum Wage? A Guide to Advertised Salary and Take-Home Pay

Understanding the Current Minimum Wage Rates

If you are asking what is the current minimum wage, the answer depends on your age and employment status. From April 2026, the UK government has set new statutory rates following recommendations from the Low Pay Commission. These rates apply to almost all workers and are enforced by HMRC.

National Living Wage (21 and over)

The National Living Wage for workers aged 21 and over is £12.71 per hour. This is a 4.1% increase from the previous rate of £12.21. The government expects this rate to stay ahead of inflation, providing a real-terms increase for minimum wage workers. However, the actual impact on your household income depends on your tax and benefit situation.

National Minimum Wage (18–20)

Workers aged 18 to 20 are entitled to £10.85 per hour. This rate increased by 8.5%, narrowing the gap with the National Living Wage. It now stands at 85% of the NLW rate.

Under 18 and Apprentice Rates

Workers under 18 receive £8.00 per hour, the same rate as apprentices who are under 19 or in their first year of apprenticeship. Apprentices aged 19 or over who have completed their first year are entitled to the age-appropriate minimum wage (e.g., £12.71 if 21+).

Accommodation Offset

If your employer provides living accommodation, they can count up to £11.10 per day (or £77.70 per week) towards your pay. This offset is not additional pay but a reduction in the minimum wage calculation.

These rates are set out in official GOV.UK guidance and the National Minimum Wage (Amendment) Regulations 2026.

Advertised Salary vs Take-Home Pay: What You Actually Receive

When you see a job advert quoting a salary, that figure is the gross annual or hourly pay before any deductions. Your take-home pay – the amount that lands in your bank account – will be lower. Understanding the difference is crucial for budgeting.

Deductions from Gross Pay

Typical deductions include:

• Income Tax: You pay tax on earnings above your Personal Allowance (£12,570 for 2026/27).
• National Insurance: Class 1 contributions are deducted from your pay if you earn above a certain threshold.
• Pension Contributions: If you are enrolled in a workplace pension, a percentage of your pay goes into your pension pot.
• Student Loan Repayments: If you have a student loan, repayments are taken automatically once your income exceeds the threshold.
• Other Deductions: Union subscriptions, childcare vouchers, or court-ordered payments.

Example: Full-Time Worker on National Living Wage

A full-time worker aged 21+ working 35 hours per week at £12.71 per hour would have a gross weekly pay of £444.85. After tax, NI, and a 5% pension contribution, the take-home pay would be approximately £350–£370 per week, depending on their tax code and student loan status. This is consistent with ONS Average Weekly Earnings data, which shows median full-time pay around £745 per week for all employees – but that figure includes higher-paid roles.

Impact of Universal Credit

If you receive Universal Credit, your take-home pay may increase by more than the headline minimum wage rise because the government also increased the standard allowance by 6.2% in April 2026. However, for workers who pay tax but do not receive benefits, the increase in take-home pay is smaller due to frozen tax thresholds.

For more detailed breakdowns, visit our pay data page, which includes average earnings by region and sector.

How to Check Your Pay

It is your right to receive at least the statutory minimum wage. Your employer must provide a payslip showing your gross pay, deductions, and net pay. If you suspect you are being underpaid, you can:

• Use the official minimum wage calculator on GOV.UK.
• Contact Acas for free, confidential advice.
• Report your employer to HMRC.

Remember that advertised salaries are often higher than the minimum, especially in sectors like healthcare, retail, and hospitality. Always check the contract and ask about overtime rates, shift premiums, and any additional allowances.

Internal Resources

For more guidance on pay rates and employment rights, see our UK Minimum Wage homepage and pay guides blog. We also cover topics like topics on zero-hours contracts and salary negotiation.

Conclusion

Knowing what is the current minimum wage is the first step to understanding your earnings. But the advertised salary is only part of the picture – your take-home pay depends on deductions and benefits. Always review your payslip and use official tools to ensure you are paid correctly. The rates change every April, so bookmark this page for updates.

Disclaimer: Figures are public reference values for orientation only. Actual pay depends on age band, role, region, hours, overtime, and contract terms. Always check your contract and current statutory rates.