TL;DR
From 1 April 2026, the minimum wage in UK payroll is £12.71 an hour for workers aged 21 and over, £10.85 for those aged 18–20, and £8.00 for workers under 18 who have reached school-leaving age. The qualifying apprentice rate is also £8.00.
The advertised hourly rate is only the starting point. Employers must also account for eligible working time, worker age, apprenticeship status and deductions that may affect minimum-wage pay.
Table of contents
- TL;DR
- Table of contents
- Minimum wage in the UK: rates from 1 April 2026
- Minimum wage per week, month and year
- Is a £25,000 or £30,000 salary legal under UK minimum-wage rules?
- When the April rate applies to payroll
- Age changes and apprentice minimum-wage rules
- Working time that can push pay below minimum wage
- Deductions, uniforms, accommodation and tips
- Contractors, overseas employers and UK minimum-wage liability
- Minimum-wage payroll checklist for UK employers
- FAQ
- Build compliant UK payroll before the first payslip
Minimum wage in the UK: rates from 1 April 2026
The statutory hourly rates from 1 April 2026 are:
- Age 21 and over: £12.71
- Age 18–20: £10.85
- Under 18 and above school-leaving age: £8.00
- Qualifying apprentice: £8.00
Age and apprentice status determine the applicable rate. Employer size, job title and full-time or part-time status do not create a lower minimum.
These are gross wage rates, not take-home pay or the employer’s total cost. Hiring budgets may also need to cover National Insurance, pension contributions, holiday pay and payroll administration.
The statutory rates change on 1 April each year. We recommend checking the current government rate before configuring payroll or issuing a contract.
National Minimum Wage, National Living Wage and Real Living Wage
The National Living Wage is the statutory rate for workers aged 21 and over. National Minimum Wage rates apply to younger eligible workers and qualifying apprentices.
The Real Living Wage is separate. It is a voluntary rate based on living costs rather than the statutory minimum. Employers can choose to pay it, but payroll records should distinguish voluntary pay policy from legal compliance.
What is the UK minimum wage for 2027?
The government had not confirmed a 2027 rate in the supplied source material. Forecasts may help with budgeting, but they should not be entered into payroll as confirmed rates.
We recommend updating contracts, forecasts and payroll settings only after the official rate and effective date are published.
Minimum wage per week, month and year
The following examples multiply each hourly rate by common weekly schedules. Annual pay assumes 52 paid weeks, while monthly pay is the annual figure divided by 12.
| 2026 band | Hours per week | Weekly gross | Average monthly gross | Annual gross |
|---|---|---|---|---|
| Age 21+, £12.71 | 20 | £254.20 | £1,101.53 | £13,218.40 |
| Age 21+, £12.71 | 37.5 | £476.63 | £2,065.38 | £24,784.50 |
| Age 21+, £12.71 | 40 | £508.40 | £2,203.07 | £26,436.80 |
| Age 18–20, £10.85 | 20 | £217.00 | £940.33 | £11,284.00 |
| Age 18–20, £10.85 | 37.5 | £406.88 | £1,763.13 | £21,157.50 |
| Age 18–20, £10.85 | 40 | £434.00 | £1,880.67 | £22,568.00 |
| Under 18 or apprentice, £8.00 | 20 | £160.00 | £693.33 | £8,320.00 |
| Under 18 or apprentice, £8.00 | 37.5 | £300.00 | £1,300.00 | £15,600.00 |
| Under 18 or apprentice, £8.00 | 40 | £320.00 | £1,386.67 | £16,640.00 |
Actual monthly pay can vary with the hours worked. These examples also exclude employer costs. Founders can use an international employer cost calculator when building a wider hiring budget.
How much is 40 hours a week at £12.71 an hour?
At £12.71 an hour, 40 hours produces:
- £508.40 a week
- Approximately £2,203.07 a month
- £26,436.80 a year
These figures are before tax. Any additional time that counts as work may increase the minimum amount due.
Why the UK has no single minimum annual salary
The UK minimum wage is expressed as an hourly rate, so there is no universal minimum annual salary. The lawful annual amount depends on the worker’s rate and counted hours.
A lower salary may comply for a shorter schedule, while a higher salary may fail if the person regularly works substantial additional hours.
Is a £25,000 or £30,000 salary legal under UK minimum-wage rules?
For a worker aged 21 or over, £25,000 is below the £26,436.80 produced by a 40-hour week at £12.71 an hour. Across 52 weeks, £25,000 covers about 37.8 hours a week at that rate before any additional working time is included.
A £30,000 salary equals about £14.42 an hour over 40 hours a week. Over 50 hours, it falls to about £11.54 an hour, below the 2026 rate for workers aged 21 and over.
How to test a salary against minimum wage
We recommend checking each relevant payroll period by:
- Identifying the worker’s correct statutory rate.
- Calculating pay that counts for minimum-wage purposes.
- Recording all time that counts as work.
- Dividing eligible pay by counted hours.
- Investigating and correcting any shortfall.
When the April rate applies to payroll
The statutory rates change on 1 April. The precise payroll treatment can depend on the worker’s pay reference period, so employers should verify when the new rate applies rather than assuming every payroll record changes in the same way.
We recommend documenting the rate used, its effective date and the relevant payroll period.
Example: a monthly pay period crossing 1 April
A monthly payroll period may include dates before and after 1 April. In that situation, the payroll team should check the official pay-reference-period rules or seek advice from Acas rather than informally splitting or delaying the increase.
Payroll controls for an April increase
Before processing affected payroll, review:
- Worker ages
- Apprentice start dates and milestones
- Salaries expressed as effective hourly pay
- Unpaid or unrecorded working time
- Deductions and worker-paid expenses
Age changes and apprentice minimum-wage rules
Workers enter higher statutory bands as they reach the relevant age. Payroll systems should flag upcoming birthdays and assess when the higher rate becomes effective.
An apprentice qualifies for the apprentice rate if they are under 19, or if they are 19 or over and in the first year of their apprenticeship. Apprentices aged 19 or over who have completed the first year are entitled to the minimum wage for their age.
When a birthday changes the minimum-wage rate
The birthday should trigger a payroll review. We recommend confirming the correct effective period under official guidance rather than simply changing the rate on an arbitrary payroll date.
When an apprentice moves to an age-based rate
“Apprentice” should not remain a permanent payroll category. Employers need both the worker’s age and the apprenticeship start date to identify the correct rate.
Working time that can push pay below minimum wage
Required training, briefings, handovers, security checks and closing tasks may affect counted working time. Travel between work assignments may also require review, although ordinary commuting is generally treated differently.
Contracted hours alone may not show the full working day. We recommend comparing schedules, time records and manager instructions.
Example: an unpaid handover creates underpayment
A worker aged 21 or over receives £101.68 for eight hours at £12.71. If a required 15-minute handover also counts as work, dividing £101.68 by 8.25 hours gives an effective rate of about £12.32.
That is below the £12.71 statutory rate.
A working-time audit for staffing and property teams
Relevant records may include:
- Required training
- Site access procedures
- Key collection and return
- Travel between properties
- Shift handovers
- Reports and mandatory calls
Deductions, uniforms, accommodation and tips
Some deductions and job-related costs may reduce pay for minimum-wage purposes. Gross salary alone may therefore provide an incomplete compliance picture.
Tips and service charges should not be treated as substitutes for wages the employer is legally required to pay.
Costs that commonly reduce minimum-wage pay
Items requiring review include uniforms, tools, required equipment, salary sacrifice and payments made for the employer’s benefit. Their treatment depends on the nature and purpose of the payment, so we recommend checking official guidance.
How the accommodation offset works
Employer-provided accommodation has specific minimum-wage rules. Employers should verify the current official accommodation offset rather than relying on market rent or the property’s estimated value.
Contractors, overseas employers and UK minimum-wage liability
Calling someone self-employed does not by itself determine their legal status. Working practices, control, personal service and substitution arrangements may all be relevant.
Our EOR versus contractor model comparison outlines why businesses should assess the real relationship, not just the contract heading.
Minimum-wage status is not the same as a contract label
Fixed hours, close supervision and personal service can indicate that a contractor classification needs closer review. Where direct employment is appropriate, understanding what an Employer of Record does can help international founders plan local employment and payroll.
Founder checklist before hiring in the UK
Confirm:
- Worker status and work location
- Age and apprentice eligibility
- Expected working hours
- Required training and travel
- Pay frequency and payroll period
- Time-recording and deduction controls
Shor can support international payroll administration, but accurate classification, hours and worker records remain essential inputs.
Minimum-wage payroll checklist for UK employers
Our recommended process is to:
- Confirm the applicable statutory rate.
- Record eligible minimum-wage pay.
- Count qualifying working time.
- Calculate the effective hourly rate.
- Investigate and correct shortfalls.
The five figures payroll should verify every period
Retain the statutory rate, adjusted minimum-wage pay, counted hours, effective hourly rate and any difference between actual pay and the required minimum.
Why paying exactly the legal rate is fragile
One missed handover, required task or relevant worker expense can reduce the effective hourly rate. We recommend combining accurate timekeeping and deduction controls with a sensible pay buffer.
Build compliant UK payroll before the first payslip
Talk to Shor about setting up international payroll with clear worker data, effective dates, time records and deduction controls before the first payroll run.
FAQ
How much is 40 hours a week at minimum wage in the UK?
From April 2026, a worker aged 21 or over earns £508.40 a week for 40 hours at £12.71. That is approximately £2,203.07 a month or £26,436.80 a year before tax.
Is £25,000 enough for a full-time UK salary?
It depends on the hours and applicable age band. For a worker aged 21 or over working 40 hours a week, £25,000 is below the £26,436.80 annual equivalent of the 2026 statutory rate.
What is the minimum salary in the UK?
There is no single minimum annual salary. The required amount depends on the worker’s age, apprentice status, eligible pay and counted working hours.
Is £30,000 above the UK minimum wage?
At 40 hours a week, £30,000 equals about £14.42 an hour and exceeds the 2026 rate for workers aged 21 and over. If substantially more hours count as work, the result may differ.