Minimum Wage Checker
Verify National Minimum Wage & Living Wage compliance for employees based on April 2026 rates.
Employee Details
Fill in the form to check minimum wage compliance
Important Disclaimer
This tool provides indicative calculations only and does not constitute financial, accounting, tax, or legal advice. The accuracy of results depends on the accuracy of information you provide. Consult a qualified professional for complex situations.
Overview
The UK National Minimum Wage (NMW) and National Living Wage (NLW) are legal pay floors set by the government on the recommendation of the Low Pay Commission. From 1 April 2026, the NLW for workers aged 21 and over rises to £12.71 per hour, with the 18–20 rate rising faster (to £10.85) as the government moves towards a single adult rate. Employers must apply the new rates from the first pay reference period starting on or after 1 April 2026. Underpayment — even inadvertent — triggers back pay, a penalty of up to 200% of the arrears, and public naming by HMRC. Salary sacrifice, unpaid overtime, uniform costs and accommodation charges are the most common ways employers fall below the floor without realising.
Worked Example (2026/27)
### Scenario: Salaried worker whose overtime pulls them below the minimum wage
**Inputs:** - Worker age: 24 (National Living Wage applies: £12.71/hr from April 2026) - Salary: £24,500 per year - Contracted hours: 37.5 per week, but actually works 40 hours most weeks
**Calculation:** 1. **Hourly rate on contracted hours:** £24,500 ÷ (37.5 × 52) = £12.56/hr — already below £12.71, a breach on its own 2. **Hourly rate on actual hours:** £24,500 ÷ (40 × 52) = £11.78/hr — 93p/hr below the floor 3. **Underpayment at actual hours:** (£12.71 − £11.78) × 40 hrs × 52 weeks ≈ £1,934 per year 4. **Exposure if HMRC investigates:** arrears of ~£1,934 plus a penalty of up to 200% (~£3,868), and public naming
**Final figure:** this worker needs a salary of at least £26,437 (40 × 52 × £12.71) at their actual hours — or genuinely capped hours — to be compliant in 2026/27.
2026/27 Rates & Thresholds
| Rate band | From 1 April 2026 (£/hr) | 2025/26 rate (£/hr) | Increase |
|---|---|---|---|
| Age 21+ (National Living Wage) | 12.71 | 12.21 | +4.1% |
| Age 18–20 | 10.85 | 10.00 | +8.5% |
| Under 18 | 8.00 | 7.55 | +6.0% |
| Apprentice rate | 8.00 | 7.55 | +6.0% |
| Accommodation offset (per day) | 11.10 | 10.66 | +4.1% |
Common Mistakes HMRC Penalises
- Using the wrong age band — entitlement changes on the worker's birthday, not at the start of the tax year.
- Keeping an apprentice on the apprentice rate after they turn 19 and complete their first year.
- Letting salary sacrifice (pension, cycle-to-work) take post-sacrifice pay below the floor — it is the sacrificed figure that counts.
- Ignoring regular unpaid overtime when checking salaried staff against the hourly floor.
- Counting tips towards the minimum wage — banned since October 2024 under the Employment (Allocation of Tips) Act 2023.
When to Seek Professional Advice
If you're unsure whether a worker qualifies for the apprentice rate, or their age band changes mid pay period, get professional advice before the pay run rather than after. Deductions for uniforms, tools or training, employer-provided accommodation above the £11.10 daily offset, and pay averaging for irregular-hours workers are the areas where HMRC finds most breaches. If you discover a past underpayment, correcting it promptly and keeping evidence of the correction materially reduces the penalty exposure. Records proving minimum wage compliance must be kept for six years.
Frequently Asked Questions
What is the National Living Wage for workers aged 21 and over from April 2026?+
From 1 April 2026, the National Living Wage for workers aged 21 and over rises to £12.71 per hour, up from £12.21. This rate applies to all eligible employees regardless of their contract type, provided they are not apprentices on the apprentice rate. Employers must apply it from the first pay reference period starting on or after 1 April 2026.
What are all the minimum wage rates from April 2026?+
From 1 April 2026: age 21+ (National Living Wage) £12.71 per hour, age 18–20 £10.85 per hour, under 18 £8.00 per hour, and the apprentice rate £8.00 per hour. The apprentice rate applies to apprentices under 19, or those 19 and over in the first year of their apprenticeship — after that they must get the age-appropriate rate.
What is the maximum accommodation offset rate for 2026/27?+
For 2026/27 the maximum accommodation offset is £11.10 per day (up from £10.66). If an employer provides living accommodation, this is the most that can count towards minimum wage pay, regardless of the actual rent charged. Charging more than the offset reduces the worker's pay for minimum wage purposes and can create an underpayment.
Does the minimum wage apply to salaried workers?+
Yes. Salaried workers must receive at least the minimum wage for every hour worked, checked by dividing salary by total hours. If salaried staff regularly work unpaid overtime, their effective hourly rate can fall below the floor — a common compliance failure that HMRC actively targets. Salary sacrifice also counts: it is the post-sacrifice pay that must meet the minimum.
Are tips and gratuities included in minimum wage calculations?+
No. Since October 2024, under the Employment (Allocation of Tips) Act 2023, tips must be passed to workers in full and cannot be used to make up minimum wage pay. Premium payments for overtime or shift work, benefits in kind, and employer pension contributions also do not count towards the minimum wage calculation.
What are the penalties for paying below the minimum wage?+
HMRC can issue a Notice of Underpayment requiring full back pay plus a penalty of 200% of the arrears, capped at £20,000 per worker, and employers are named publicly on the government's naming scheme. Employers must keep records sufficient to prove compliance for six years. Deliberate non-compliance can lead to criminal prosecution.
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