Every year, UK minimum wage rates change on 1 April, and payroll must be updated to match. The National Living Wage 2026 UK update is especially important for employers with hourly staff, variable hours, apprentices, and any roles close to wage thresholds.
In this guide, you’ll find the official National Living Wage 2026 UK rates, plus a practical checklist to help you update payroll cleanly, reduce the risk of underpayment, and keep employee communications clear.
National Living Wage 2026 UK: the new rates from 1 April 2026
From 1 April 2026, the UK minimum wage bands increase. The key figures are:
Age 21 and over (National Living Wage): ÂŁ12.71 per hour
Age 18 to 20: ÂŁ10.85 per hour
Under 18: ÂŁ8.00 per hour
Apprentice: ÂŁ8.00 per hour
These rates apply across the UK and must be reflected in payroll from the first pay period that includes work done on or after 1 April 2026.
Official rates: https://www.gov.uk/government/publications/minimum-wage-rates-for-2026
Practical employer guidance: https://www.acas.org.uk/national-minimum-wage-entitlement
Why the National Living Wage 2026 UK update matters for payroll
Minimum wage compliance is not just a “HR policy” issue — it’s a payroll execution issue. The National Living Wage 2026 UK uplift impacts:
hourly pay rates and shift premiums
overtime calculations
salaried roles that are close to minimum thresholds (when converted to an effective hourly rate)
apprentices and younger worker bands
payroll reporting, audit trails, and pay record accuracy
When rates change, the biggest risks are simple but expensive: forgetting to update rates, missing edge cases, or applying changes late.
Payroll update checklist for 1 April 2026
Use this checklist to implement the National Living Wage 2026 UK changes properly.
1) Identify who is affected (don’t guess)
Run a payroll report and filter for employees who are:
paid hourly
close to the new thresholds
on variable hours or zero-hours arrangements
apprentices or under-21 workers
Tip: Include roles with allowances, deductions, or unpaid break structures that may affect the effective hourly rate.
2) Update your payroll system before the first April payroll run
Make sure your payroll software (or provider) is updated so the new rates apply from 1 April 2026, not “whenever you remember.”
This is one of the most common compliance slip-ups around the National Living Wage 2026 UK change: businesses update after the first April pay run and end up needing corrections and back-pay calculations.
3) Re-check salaried staff near the minimum threshold
Some employers assume minimum wage only affects hourly workers. But if an employee’s salary is close to the minimum, their effective hourly rate can fall below the National Living Wage 2026 UK level depending on hours worked and pay structures.
Where relevant:
confirm expected working hours
check effective hourly rate (salary Ă· hours)
review any unpaid time that could affect compliance
4) Handle age band changes correctly
Employees moving into a new band (for example, turning 21) can trigger a required pay increase. The National Living Wage 2026 UK framework makes band accuracy critical.
Build a monthly reminder to check:
birthdays that trigger band changes
apprentice status changes
changes in working hours that affect compliance
5) Review deductions, uniforms, and unpaid time rules
Payroll compliance can be affected by deductions or costs that reduce a worker’s pay in certain circumstances. While the rules can be nuanced, your safest approach is to review:
any payroll deductions that may impact take-home pay
uniform or equipment policies
unpaid breaks vs paid breaks
travel time rules (where relevant to your sector)
If you’re unsure, it’s safer to get your payroll provider or HR support to confirm how these interact with the requirements.
6) Communicate the change clearly to employees
A short internal announcement prevents confusion and helps reduce payroll queries.
Example:
“Your hourly rate will be updated from 1 April 2026 in line with the UK minimum wage changes. This will appear in your next payslip.”
Good payroll communication also relies on clean documentation and records.
7) Store the evidence: payroll records, payslips, and change logs
When minimum wage updates happen, your payroll audit trail matters. Keep:
the pay rate change summary
payroll reports for the first April run
payslips showing the updated rate
internal approval notes or a change log
This makes it easy to resolve disputes and show compliance.
Common mistakes employers make with minimum wage updates
Here are the errors that show up every April:
Updating rates late (after the first April pay run)
Forgetting apprentices or under-18 bands
Missing age band changes
Assuming salary workers are unaffected
Not keeping a simple audit trail of the changes
Avoiding these mistakes is a big part of staying compliant with the National Living Wage 2026 UK update.
How payroll services can make April changes easier
Minimum wage updates are predictable, but they’re still easy to mishandle—especially when you’re busy, scaling, or running multi-role payroll.
A payroll provider can help you:
implement updated rates correctly from 1 April
monitor band changes and edge cases
maintain consistent records and payslips
reduce compliance and back-pay risk
Final takeaway
The National Living Wage 2026 UK changes are straightforward on paper—but payroll execution is where most problems happen. Update rates before the first April payroll, double-check age bands and apprentices, and keep clean payroll records. If you want fewer errors and less admin each year, using a payroll service can make the annual April update much smoother.
