Exactly how much you take home on the UK National Living Wage of 12.71 per hour. Weekly, monthly and annual take-home after tax.
| Hours per Week | Annual Gross | Annual Take-Home | Monthly Take-Home |
|---|---|---|---|
| 35 hrs | 23,115 | 19,152 | 1,596 |
| 37.5 hrs | 24,766 | 20,215 | 1,685 |
| 40 hrs | 26,418 | 21,478 | 1,790 |
| 45 hrs | 29,720 | 23,690 | 1,974 |
| Category | Hourly Rate |
|---|---|
| National Living Wage (21 and over) | 12.71 |
| Age 18 to 20 | 10.00 |
| Under 18 | 7.55 |
| Apprentice | 7.55 |
On the NLW at 40 hours per week (26,418/year), you pay income tax at 20% on 13,848 (earnings above the 12,570 personal allowance), giving 2,770 per year. National Insurance is 8% on 13,848, giving 1,108 per year. Combined deductions are 3,878, leaving take-home of approximately 22,540 before pension.
The NLW rose from 11.44 to 12.71 per hour in April 2026 — an increase of 1.27 per hour or 11.1%. At 40 hours per week this is an extra 2,643 per year in gross pay. After tax and NI, the take-home increase is approximately 1,900 per year or 158 per month.
Workers on the National Living Wage should be cautious about salary sacrifice arrangements. The law prevents employers from using salary sacrifice to reduce a worker's effective hourly rate below the National Living Wage. Pension salary sacrifice above a small amount may not be legally available for NLW workers — check with your employer.
What is the minimum wage take-home pay in 2026?
On the National Living Wage of 12.71/hr working 40 hours per week, annual gross is 26,418. Take-home is approximately 21,474 per year or 1,789 per month after income tax and NI.
What is the National Living Wage in 2026?
The National Living Wage for workers aged 21 and over is 12.71 per hour from April 2026, up from 11.44 in 2025 — an increase of 11.1%.
Do you pay income tax on minimum wage?
Yes. At 40 hours per week, minimum wage gross salary (26,418) exceeds the personal allowance (12,570), so you pay 20% income tax on 13,848 — approximately 2,770 per year.
Free, accurate, 2026-27 rates. Scotland and tax code supported.