The latest update to National Minimum Wage (NMW) and National Living Wage (NLW) rates are officially on their way and while it’s great news for employees, it’s time for employers to sprinkle a little payroll magic to stay compliant.
From 1 April 2026, the new hourly rates will be:
- 21 and over (National Living Wage): £12.71 (up from £12.21)
- 18–20 year olds: £10.85 (up from £10.00)
- 16–17 year olds: £8.00 (up from £7.55)
- Apprentices: £8.00 (up from £7.55)
The biggest percentage increase is for the 18–20 age group (a notable jump of around 8.5%), showing a continued move toward narrowing the gap between age bands.
Now for the important bit…
1. It’s not optional
These rates are a legal minimum, not a guideline. Underpaying staff – even accidentally – can lead to penalties, back-pay and some very unwanted attention from HMRC.
2. Timing matters
The new rates apply from the first pay reference period starting on or after 1 April 2026.
3. It’s not just hourly pay
Minimum wage compliance includes:
- Salaried workers
- Deductions (like uniforms or salary sacrifice)
- Unpaid working time
This is your friendly nudge to:
✔ Review employee ages (especially those moving into a new band)
✔ Check apprentice status and eligibility
✔ Audit any deductions that could impact minimum wage
✔ Update your payroll software before your April run
You might also hear about the Real Living Wage, which is higher:
- £13.45 across the UK – (£14.80 in London)
Unlike the government rates, this one’s voluntary — but many employers choose to adopt it to better reflect actual living costs.
Get in touch if you’d like help preparing for April — we’ve got you covered at Pixie Payroll.