What is the National Living Wage for 2026/27?
The National Living Wage (NLW) for 2026/27 is £12.71 per hour for workers aged 21 and over. For a full-time worker doing 37.5 hours per week, this is equivalent to £476.63 per week, £2,065 per month, or £24,784.5 per year (before tax).
All minimum wage rates (April 2026)
| Age group | Hourly rate | Annual (full-time) |
|---|---|---|
| 21 and over (NLW) | £12.71 | £24,784.5 |
| 18 to 20 | £10.85 | £21,157.5 |
| Under 18 | £8.00 | £15,600 |
| Apprentice | £8.00 | £15,600 |
Take-home pay on the National Living Wage
On a £24,784.5 salary (NLW full-time equivalent), most of your income falls within the £12,570 Personal Allowance and is therefore tax-free. You will pay a small amount of income tax (20% on the portion above £12,570) and National Insurance (8% above £12,570). Use our salary calculator for £24,000 to see the exact take-home pay.
NLW vs Real Living Wage
The National Living Wage is the government-mandated minimum. The Real Living Wage, calculated by the Living Wage Foundation based on the cost of living, is £12.60/hour nationally and £13.85/hour in London (2024/25 rates). The Real Living Wage is voluntary for employers.
While the NLW is legally enforced and employers face fines for non-compliance, the Real Living Wage is an accredited scheme that thousands of UK employers choose to adopt voluntarily. Employers who pay the Real Living Wage can display the Living Wage Foundation accreditation mark.
How the NLW has changed over time
The National Living Wage was introduced in April 2016 at £7.20 per hour for workers aged 25 and over. The age threshold fell to 23 in 2021 and to 21 in April 2024. The April 2026 rate of £12.71 is 4.1% higher than the previous £12.21 rate. The Low Pay Commission recommends the rate each year based on earnings, economic conditions, and affordability for businesses.
How NLW affects your tax and NI
At the 2026/27 NLW rate, a full-time worker on 37.5 hours a week earns £24,784.50 per year. Before pension contributions or student loans, that is approximately £21,364 after £2,443 in Income Tax and £977 in employee National Insurance, or about £1,780 per month. All undergraduate student-loan plan thresholds are above this annual salary, although payroll deductions are assessed by pay period.
Source: Gov.uk — National Minimum Wage and National Living Wage rates. Last updated: April 2026.