National minimum wage increases in 2026

What do employers need to know

The government has recently announced the yearly increase to the national minimum wage and whilst the decision has been made in an effort to strike a balance between both employers and employees competing concerns, including the challenges that come with running a business and the ever-growing cost of living, it is clear both sides are under pressure.

The following increases to the national minimum wage rates will take effect on 1 April 2026:

• 21 and over – from £12.21 to £12.71 per hour
• 18-20 – from £10 to £10.85 per hour
• 16-17 and apprentices – from £7.55 to £8 per hour

NB: Apprentices are entitled to the minimum wage for their age if they are both:

• Aged 19 or over
• Have completed the first year of their apprenticeship

What do employers need to check

Following this announcement and pending increase, it is important for employers to check that salaried employees will be paid the correct rate.

The new rises mean an extra £1,500 a year for full-time employees under 21, and a £900 salary increase for those 21 and over. Employers will therefore need to review their positions to ensure that an employee’s annual salary is in line with the new minimum wage.

Employers should take advantage of this timely announcement and review matters sooner rather than later. Whilst April 2026 feels a fair while off, it is good practice to ensure that payroll systems are reviewed ahead of the change to wages to prevent pay from falling below the new national minimum wage.

Real Living Wage

For those employers who have signed up to the voluntary Real Living Wage set by the Living Wage Foundation, the rates from April 2026 are set to increase as follows:

• £14.80 an hour in London (up 95p)
• £13.45 across the rest of the UK (up 85p)

Important to remember

To demonstrate compliance with HMRC, an employer will need to look at what an employee is paid in the relevant pay period. It is not sufficient to say that over the course of a year an employee is paid the minimum wage.

An employer will need to check the calculation of the hours and pay based on the pay period that applies. This is particularly important when dealing with employees who have variable hours each month or employees who are performing non-secured work.

If you need any help with this

Our team are able to assist with a range of enquiries and HR support. If you have concerns in respect of changes to the national minimum wage and would like any support, please contact us on 01983 897003.