What is National Living Wage? UK Definition 2026/27
Quick Answer
The legal minimum hourly pay for workers aged 21 and over.
Definition of National Living Wage
The National Living Wage (NLW) is the government-mandated minimum wage for workers aged 21 and over. For 2026/27, the rate is £12.21 per hour. Younger workers have lower minimum rates. Employers must pay at least these amounts - failure to comply is illegal and attracts penalties.
National Living Wage — Key Facts for 2026/27
| 21+ rate | £12.21/hour |
| 18-20 rate | £10.00/hour |
| Under 18 | £7.55/hour |
| Apprentice rate | £7.55/hour |
How National Living Wage Works — Example
- 1Hourly rate: £12.21
- 235 hours/week: £427.35
- 3Annual (52 weeks): £22,222.20
- 4After tax/NI: ~£19,500 take home
How National Living Wage Affects Your Tax
NLW increases affect labour costs significantly. Employers must review pay rates each April. Being caught underpaying triggers penalties, back pay, and public naming and shaming.
Official HMRC Guidance on National Living Wage
For official guidance, refer to HMRC's documentation. Tax rules can change, so always verify current rates and thresholds on gov.uk.
GOV.UK: Minimum wage ratesFrequently Asked Questions about National Living Wage
Accuracy Note
This information is for guidance only and is based on 2026/27 tax year rates. Tax rules are complex and your circumstances may differ. For personal advice, consult a qualified accountant or tax adviser.