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The National Minimum Wage Is Increasing in April 2026 – Here’s Everything You Need to Know
The National Minimum Wage (NMW) and National Living Wage (NLW) will increase again in April 2026.
For many small and mid-sized employers, this is not simply an annual adjustment. It affects payroll forecasting, salary alignment, supervisor differentials and, in some sectors, pricing decisions.
If you employ staff in the UK, here is what you need to know.
The New Rates from April 2026
From April 2026, the hourly rates will be:
- £12.21 rising to £12.71 – National Living Wage (age 21 and over)
- £10.00 rising to £10.75 – Age 18–20
- £7.55 rising to £8.00– Under 18
- £7.55 rising to £8.00 – Apprentice rate (if under 19, or 19+ in first year)
These increases apply from the first full pay reference period starting on or after 1 April 2026.
If your payroll cycle crosses into April, you must ensure the correct rate is applied from that pay reference period.
Who Must Be Paid the Minimum Wage?
Almost all workers in the UK are entitled to be paid at least the National Minimum Wage or National Living Wage, including:
- Full-time and part-time employees
- Casual workers
- Agency workers
- Apprentices (subject to age and year of apprenticeship)
It does not matter how small your business is. The obligation applies regardless of size.
Salary Breakdown – 2025 vs 2026 (Age 21+)
Below is an illustration of the impact moving from £12.21 (2025) to £12.71 (2026).
(Annual figures calculated using 52 weeks.)
Even at a standard 40-hour week, the uplift equates to £1,040 per employee per year before employer National Insurance and pension contributions.
For a business employing 20 staff on 40-hour minimum wage contracts, that represents an additional £20,800 in base wage cost annually, excluding on-costs.
Common Compliance Risks
Minimum wage breaches are rarely deliberate. They often arise from:
- Salary sacrifice schemes pushing pay below minimum thresholds.
- Unpaid training time.
- Deductions for uniforms or equipment.
- Incorrect apprentice rates.
- Failure to adjust pay immediately after a birthday moves an employee into a higher band.
HMRC can issue fines of up to 200% of arrears (capped per worker) and publicly name employers who breach minimum wage law.
What Small Businesses Should Review Now
With April approaching, employers should:
- Audit current hourly rates.
- Confirm correct age band classifications.
- Adjust payroll systems.
- Review supervisor and experienced staff differentials.
- Check that deductions do not reduce effective hourly pay below the legal minimum.
- Forecast total payroll cost including NI and pension.
How This Fits Into the Wider 2026 Employment Law Picture
In April 2026, employers are also adapting to:
- Day-one Statutory Sick Pay.
- Strengthened family leave rights.
- Ongoing preventative duties around workplace harassment.
- Greater scrutiny of employer processes.
The combined effect is increased operational cost and increased procedural expectation.
Forward planning is essential.
FAQs
When does the new minimum wage take effect?
From 1 April 2026, applying from the first full pay reference period starting on or after that date.
Does the National Living Wage apply to everyone over 18?
No. The National Living Wage rate applies to workers aged 21 and over.
Can salary deductions reduce pay below minimum wage?
In many cases, yes. Certain deductions (for example, uniforms or tools) can reduce pay for minimum wage calculation purposes.
What are the penalties for underpaying staff?
Employers can be required to repay arrears, fined up to 200% of the underpayment (subject to caps), and publicly named by HMRC.
Need Support Reviewing Pay Structures?
If you would like help reviewing salary alignment, benchmarking roles or planning recruitment around April’s changes, our team can support you.
Contact Appointments Personnel
to discuss your staffing structure or recruitment strategy.
