The National Living Wage rose to £12.71 an hour on 1 April 2026, and the rates for younger workers and apprentices went up by even more in percentage terms. For most employers the hourly paid staff are easy to check. The people who slip through are usually salaried, working unpaid extra hours, or paying for a uniform. With Christmas hiring about to start, now is a good time to check your whole payroll.
The short version
- From 1 April 2026 the National Living Wage for workers aged 21 and over is £12.71 an hour.
- Workers aged 18 to 20 must get at least £10.85, and under 18s and eligible apprentices at least £8.00.
- Salaried staff count too. Divide their pay by the hours they actually work, not just the hours in their contract.
- Deductions for uniforms, tools and similar items can take someone below the minimum, even if their headline rate looks fine.
- Underpaying is a criminal offence. On top of paying the arrears, the penalty is 200% of the underpayment, up to £20,000 per worker, and employers can be publicly named.
The 2026/27 rates
These rates apply from 1 April 2026. The right rate depends on the worker’s age, and for apprentices on how far into their apprenticeship they are.
| Age band | April 2025 rate | April 2026 rate | Full time equivalent at 40 hours a week |
|---|---|---|---|
| 21 and over (National Living Wage) | £12.21 | £12.71 | £26,436.80 a year |
| 18 to 20 | £10.00 | £10.85 | £22,568.00 a year |
| Under 18 | £7.55 | £8.00 | £16,640.00 a year |
| Apprentice | £7.55 | £8.00 | £16,640.00 a year |
The annual figures assume 2,080 paid hours (40 hours for 52 weeks). The apprentice rate only applies to apprentices aged under 19, or aged 19 or over and in the first year of their apprenticeship. Once an apprentice is 19 or over and has finished their first year, they must get the rate for their age.
Why salaried staff are the blind spot
A salary of £24,000 or £25,000 feels comfortably safe. It is not always. For staff on an annual salary under a contract for a set number of hours a year (what GOV.UK calls “salaried hours” work), you work out their hourly rate by dividing what they are paid in each pay period by the average hours they work in that period.
The key point is that employers must pay at least the minimum wage for any hours worked on top of what the contract says. So a salaried manager who regularly stays late or covers weekends can drop below the minimum while their payslip never changes.
Worked example: the £24,000 salary
A business employs a 25 year old assistant manager on £24,000 a year for a 40 hour week.
- Hours over the year: 40 hours x 52 weeks = 2,080 hours.
- Effective hourly rate: £24,000 / 2,080 = about £11.54 an hour.
- National Living Wage from April 2026: £12.71 an hour.
That salary is about £1.17 an hour short. To meet the National Living Wage for 2,080 hours, the salary would need to be at least £26,436.80, a gap of £2,436.80 a year. If the same person is also working an extra five unpaid hours most weeks, the gap is wider still.
A salary that was compliant a couple of years ago can easily fall behind, so check every salaried role each April, not just new hires.
What happens if you get it wrong
Minimum wage enforcement now sits with the Fair Work Agency. If underpayment is found, the arrears must be paid back to the workers. The civil penalty is 200% of the total underpayment, capped at £20,000 per worker, with a minimum penalty of £100. The penalty is halved if all the unpaid wages and 50% of the penalty are paid in full within 14 days.
Employers can also be named publicly. The government considers naming in cases where the total arrears owed to workers are £500 or more, and a lower threshold applies to repeat offenders. In serious, deliberate or persistent cases, the Fair Work Agency can refer an employer for criminal prosecution, and faking payment records is also a criminal offence.
You must keep records that show you have paid the minimum wage. For records created on or after 1 April 2021, that means keeping them for at least six years.
Taking on Christmas and seasonal staff
Seasonal workers have the same minimum wage rights as permanent staff, whether they work two weeks or two months. Before anyone starts this winter, run through four checks.
- Right to work. Check that every applicant is allowed to work in the UK before you employ them, and keep a record of the check. Skipping it can mean a civil penalty. Check everyone, without assumptions based on where someone is from.
- Payroll from day one. Seasonal staff go through PAYE like anyone else. Add them before their first payday so they are reported to HMRC and taxed correctly, even for a few shifts.
- Auto-enrolment assessment. Your workplace pension duties apply to temporary staff too. Workers aged between 22 and State Pension age who earn at least £10,000 a year and normally work in the UK must be enrolled, and earnings are assessed each pay period, so a busy December can trigger enrolment.
- Holiday accrual. Almost all workers are entitled to 5.6 weeks’ paid holiday a year. For leave years starting on or after 1 April 2024, irregular hours and part-year workers build up holiday based on the hours they have actually worked, so make sure your system is accruing it and paying it when they leave.
Common mistakes we see
- Unpaid overtime. Extra hours that are expected but not paid reduce the effective hourly rate. This is the most common way salaried staff fall below the minimum.
- Uniform deductions. Deducting the cost of a uniform, tools or safety gear from wages, or asking staff to buy them without a refund, counts against minimum wage pay. A worker on exactly £12.71 an hour who pays for their own uniform is being underpaid.
- Birthdays and apprentice anniversaries missed. When a worker turns 18 or 21, or an apprentice aged 19 or over finishes their first year, their pay must move up to the higher rate.
- Tips used to top up pay. Tips and service charges do not count towards the minimum wage.
Questions and answers
Does the National Minimum Wage apply to temporary and seasonal workers?
Yes. Workers are entitled to the minimum wage for their age however short the job is, including Christmas temps, casual staff and agency workers.
How do I check whether a salaried employee is paid enough?
Divide the pay for the period by the average hours worked in that period, including any hours worked on top of their contract. If the result is below the rate for their age, you need to increase their pay.
Can I deduct the cost of a uniform from wages?
You can only do this if it does not take the worker below the minimum wage. Uniforms, tools and safety equipment the worker pays for and is not refunded for are taken off their pay when you check minimum wage compliance.
What happens if I find I have underpaid someone?
Put it right straight away by paying the arrears and correcting their pay going forward. If the underpayment is found by the Fair Work Agency instead, you face a penalty of 200% of the arrears, up to £20,000 per worker, and you could be named.
Want us to check your payroll?
We run payroll for employers across Haywards Heath and Mid Sussex, and a minimum wage check across every employee is part of how we work. If you are not sure about a salaried role, or you are taking on Christmas staff, a short conversation now can save a costly correction later: book a free consultation, or read more about our payroll services in Haywards Heath. Prefer to talk? Call or WhatsApp us on 01444 300981.
Sources
- GOV.UK: National Minimum Wage and National Living Wage rates
- GOV.UK: Employers and the National Minimum Wage
- GOV.UK: Minimum wage for salaried hours work
- GOV.UK: Fair Work Agency enforcement statement
- GOV.UK: Check a job applicant’s right to work
- GOV.UK: Workplace pensions for employers
- GOV.UK: Holiday entitlement
This guide is general information based on the rules for the 2026/27 tax year and is not personal advice. Your own position depends on your full circumstances.