National Living Wage now
£12.71
21 and over, from April 2026
LPC estimate, April 2027
£13.18
+47p an hour
Full time, 37.5 hours
£25,701
a year, up from £24,785
Decision expected
By 28 October
Takes effect 1 April 2027
Current rates from GOV.UK. The April 2027 figure is the Low Pay Commission's own estimate, not a decision. Annual pay is PayMetric Labs' own modelled estimate over 52 weeks.
Minimum wage 2027 calculator: your pay or your payroll
April 2027 rate (estimate)
£13.18/hr
£0.47 more than £12.71
Gross pay a year
£25,701
+£916 (£76 a month)
Take-home a year
£22,024
+£660 after tax and NI
April 2027 figures use the Low Pay Commission's estimate range, not an announced rate. PayMetric Labs' own modelled estimate. 52 paid weeks. Take-home uses England, Wales and Northern Ireland 2027/28 income tax and employee NI as currently legislated, with no pension or student loan. Employer cost adds 15% employer NI above £5,000 for workers aged 21 and over; employers pay none for under-21s or apprentices under 25 at these pay levels. Pension contributions and the Employment Allowance are not included.
How the April 2027 National Living Wage is set
The rate isn't picked by ministers from scratch. Each year the government gives the Low Pay Commission, an independent body of employer, worker and academic members, a target. For the National Living Wage it is two-thirds of median hourly earnings for workers aged 21 and over. The Commission takes evidence from employers and unions (this year's consultation closed on 26 June), recommends rates in the autumn, and the government has accepted them in full in recent years.
The £13.02 to £13.34 range exists because median pay for 2027 isn't known yet: the Commission projects it from wage growth forecasts. Faster pay growth through 2026 pushes the final figure up. The Commission must also weigh the economy, jobs and living costs, and its 2026 remit letter notes extra uncertainty from the conflict in the Middle East.
For a sense of scale, the last increase took the rate from £12.21 to £12.71 (4.1%), and the Commission's August 2025 central estimate was also £12.71. That estimate turned out exactly right.
| Rate | From April 2026 | From April 2027 |
|---|---|---|
| National Living Wage (21 and over) | £12.71 | £13.18 (estimate) |
| 18 to 20 | £10.85 | Not yet estimated |
| 16 to 17 | £8.00 | Not yet estimated |
| Apprentice | £8.00 | Not yet estimated |
| Accommodation offset (a day) | £11.10 | Not yet set |
Sources: GOV.UK, 26 November 2025; LPC consultation letter, 1 April 2026. Checked 4 October 2026.
What £13.18 an hour means for your pay
Gross and take-home pay a year at the April 2027 rate estimate, 52 weeks, England, Wales and Northern Ireland tax, no pension or student loan. PayMetric Labs' own modelled estimate:
| Hours a week | Weekly | Gross a year | Take-home a year |
|---|---|---|---|
| 16 | £210.88 | £10,966 | £10,966 |
| 30 | £395.40 | £20,561 | £18,323 |
| 37.5 | £494.25 | £25,701 | £22,024 |
| 40 | £527.20 | £27,414 | £23,258 |
Full time, the rise is worth £916 a year gross but £660 after tax and NI, because tax thresholds are frozen while pay goes up. Every extra pound above the £12,570 allowance loses 28p to income tax and National Insurance. If the Budget lifts the Personal Allowance, minimum wage workers gain twice: our Autumn Budget calculator shows by how much.
Are you paid the right rate today?
Check your hourly pay against your age band and see any shortfall.
The 18 to 20 rate in 2027
The government has committed to removing what it calls the discriminatory age bands for adults, by bringing the 18 to 20 rate up to the National Living Wage. It hasn't set a date: the Commission's remit gives it “full flexibility” on timing. So far it has closed the gap in steps. In April 2026 the 18 to 20 rate rose 8.5% to £10.85, against 4.1% for the National Living Wage, taking it to 85% of the adult rate.
For employers of younger staff, that matters more than the headline rate. Another large step in April 2027 would raise the cost of an 18 to 20-year-old faster than anyone else on your payroll, although employers pay no National Insurance on workers under 21 at these pay levels.
National Living Wage vs real Living Wage
They are easy to confuse and they move on different dates. The National Living Wage is the legal minimum, enforced by HMRC. The real Living Wage is a voluntary rate the Living Wage Foundation calculates from the cost of living: £13.45 across the UK and £14.80 in London for 2025-26. The 2026-27 rates are announced on 15 October 2026, and accredited employers have until 1 May 2027 to pay them.
If you work for an accredited Living Wage employer, the real Living Wage is your floor and the National Living Wage rise barely matters. Everyone else is covered by the legal rate. See the Living Wage Foundation for the list of employers.
Employer checklist for April 2027
- Budget with the LPC range, not just the central figure: £13.34 is the top of the range. The employer view in the calculator above shows the cost per worker.
- List everyone within about 50p of the new rate, not just those on it. Keeping pay differentials for supervisors is where the real cost sits.
- Check salary sacrifice schemes. A pension or car sacrifice that was legal at £12.71 can take someone below the new minimum.
- Look at your pay reference periods. The new rate applies from the first pay period that starts on or after 1 April, so a monthly period running from 15 March to 14 April stays on the old rate. Our employer cost calculator adds NI and pension costs.
- Tell staff the new rate in writing before 1 April, with the first payslip it appears on.
Minimum wage 2027 questions
What will the minimum wage be in April 2027?
It isn't set yet. The Low Pay Commission estimates the National Living Wage needs to reach £13.18 an hour in April 2027 to stay at two-thirds of median earnings, within a range of £13.02 to £13.34. The government confirms the rate in the autumn, and it takes effect on 1 April 2027.
When is the April 2027 minimum wage announced?
Around the Autumn Budget on Wednesday 28 October 2026. In the last three years the rates came out the day before or on the day of the Budget or Autumn Statement: 21 November 2023, 29 October 2024 and 26 November 2025.
What is the minimum wage for an 18-year-old in 2027?
£10.85 an hour until 31 March 2027. No estimate has been published for April 2027. The government has said it wants to align the 18 to 20 rate with the National Living Wage and has left the timing to the Low Pay Commission. Last year's rise was 8.5%, double the National Living Wage increase.
Is the National Living Wage the same as the real Living Wage?
No. The National Living Wage is the legal minimum for workers aged 21 and over. The real Living Wage is a voluntary rate set by the Living Wage Foundation from the cost of living: £13.45 across the UK and £14.80 in London for 2025-26. Only employers who sign up to it have to pay it.
Why does my pay look lower than the minimum wage?
Check three things. Salary sacrifice (for a pension, car or bike scheme) can't take your pay below the minimum wage, even if you agreed to it. Deductions for uniform, tools or other work costs count against your pay. And time that is work, such as travelling between assignments or required training, has to be paid too. If your average hourly pay across the pay period is still below the rate, contact Acas or report it to HMRC.
Does the National Living Wage apply in Scotland and Northern Ireland?
Yes. The National Minimum Wage and National Living Wage are the same across England, Scotland, Wales and Northern Ireland. Only income tax differs: Scotland has its own rates, so take-home on the same wage is slightly different there.
Do I pay tax on the National Living Wage?
If you work full time, yes. At 37.5 hours a week, £12.71 an hour is £24,785 a year, above the £12,570 Personal Allowance, so you pay 20% income tax and 8% National Insurance on the part above it. Part-time workers below the allowance pay neither.
Methodology and limits
Current rates come from GOV.UK and the 26 November 2025 announcement. The April 2027 range is the Low Pay Commission's estimate in its 2026 consultation letter, not a decision. Real Living Wage rates come from the Living Wage Foundation. All checked 4 October 2026.
Pay figures assume 52 paid weeks and a flat hourly rate. Take-home uses PayMetric Labs' England, Wales and Northern Ireland model for 2027/28, with tax thresholds frozen as currently legislated. Employer costs use 15% employer NI above £5,000 and exclude pension contributions and the Employment Allowance. This is general information, not legal advice.