Updated October 2026: rates revised for April 2026, with the increases announced for April 2027.
As accountants, we know keeping up with complex regulations is paramount for your business’s success. One crucial area is the National Minimum Wage (NMW). Here’s a quick refresh to make sure you’re compliant:
Understanding the Basics
The NMW sets the legal minimum hourly pay for workers in the UK. Different rates apply based on age and whether the worker is an apprentice. The highest rate, the National Living Wage (NLW), applies to workers aged 21 and over.
Current rates (from 1 April 2026)
| Age or category | Hourly rate from 1 April 2026 | Hourly rate from 1 April 2027 |
| 21 and over (National Living Wage) | £12.71 | £13.21 |
| 18 to 20 | £10.85 | £11.27 |
| 16 to 17 | £8.00 | £8.31 |
| Apprentice (under 19, or in the first year of the apprenticeship) | £8.00 | £8.31 |
The April 2027 rates were announced in Budget 2026. Always check the latest NMW rates on GOV.UK.
Staying Compliant
- Update pay rates from 1 April each year, and when a worker moves into a new age band.
- Accurately classify your workers to ensure correct pay rates.
- Watch for deductions, unpaid working time and uniform costs, which can take pay below the minimum.
- Maintain clear payroll records and be prepared for inspections.
Beyond Compliance
- Consider the real Living Wage: a higher voluntary rate based on living costs. Paying it can boost employee morale and attract talent.
- Seek professional advice if you have complex payroll situations or uncertainties.
Remember: Paying the correct NMW is not just a legal requirement, it’s crucial for ethical business practices and employee well-being. Employers who underpay must pay back arrears and can face penalties and be publicly named. We’re here to help: see our payroll service or contact us for personalised guidance.
Disclaimer: This blog post is intended for general information only and does not constitute professional advice. Please consult with a qualified accountant for specific guidance.