The April 2026 rates
From 1 April 2026 the National Living Wage for workers aged 21 and over is £12.71 an hour, a 4.1% rise. The 18 to 20 rate rose 8.5% to £10.85 as the government narrows the gap on the way to a single adult rate, the 16 to 17 and apprentice rates are both £8.00, and the accommodation offset is £11.10 a day. For a full time employee on 37.5 hours, the NLW now implies a minimum salary of roughly £24,800 a year.
Who gets which rate
The apprentice rate only applies to apprentices under 19, or older apprentices in the first year of their apprenticeship; after that they revert to their age rate, a transition employers routinely miss. Workers become entitled to the higher band from the pay reference period after their birthday. Almost all workers qualify, including casuals and most agency staff; genuinely self employed contractors and company directors without contracts of employment do not.
Where employers accidentally underpay
Most minimum wage breaches are technical rather than deliberate. The classics: unpaid time such as opening up, closing down, security checks or travel between assignments; uniform and equipment costs that push pay below the floor in the week they are deducted; salary sacrifice schemes that reduce pay below NMW, which is never allowed; and salaried staff whose real hours have crept up until the effective hourly rate falls short. Tips can never count toward the minimum wage, and under the Employment (Allocation of Tips) Act they must be passed on in full anyway.
Enforcement is real
HMRC enforces NMW proactively with sector sweeps and worker complaints. Get it wrong and you repay arrears at current rates going back up to 6 years, face a penalty of up to 200% of the arrears (capped at £20,000 per worker), and appear on the government's public naming list, which is uncomfortable marketing. Keep records that prove compliance for every worker for 6 years, including hours actually worked for salaried staff.
Interaction with payroll and pensions
April's rate rise should trigger a sweep of your pay rates, but also check knock on effects: higher pay means higher employer National Insurance at 15% and higher pension contributions, and can tip more employees over the £10,000 auto enrolment trigger. Our guide to employer NI and the Employment Allowance helps you model the full cost of a pay rise, and the run payroll guide covers the wider cycle.
A simple compliance routine
Once a year, list every worker, their age band, contracted hours and real hours, deductions and sacrifices, and calculate the true effective hourly rate. Do the same whenever someone has a birthday that changes their band, an apprentice passes year 1, or you change uniform or deduction policies. 10 minutes per employee once a year is dramatically cheaper than an HMRC review. If you would like this run as part of payroll, our fixed fee payroll service includes rate checks at every April uprating.
Frequently asked questions
What is the National Minimum Wage from April 2026?
£12.71 an hour for workers aged 21 and over, £10.85 for 18 to 20 year olds, and £8.00 for 16 to 17 year olds and apprentices. The accommodation offset is £11.10 a day.
What is the penalty for paying below the minimum wage?
HMRC can charge arrears going back 6 years, a penalty of up to 200% of the underpayment capped at £20,000 per worker, and publicly name the employer. Directors can also be disqualified in serious cases.
Do salaried staff need a minimum wage check?
Yes. A salary must still equal at least the minimum wage across the hours actually worked. Unpaid overtime, uniform costs and salary sacrifice can all quietly drag an annual salary below the legal floor.