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Quick Fill — NMW Rates 2026/27
Enter your salary and instantly see your net pay after income tax, National Insurance, pension and student loan deductions — based on April 2026 NMW rates.
The table below shows estimated net pay for full-time workers (40 hrs/week) at each NMW age band, assuming a standard 1257L tax code and no pension or student loan.
| Rate | Annual Salary | Monthly Net | Annual Net | Effective Rate |
|---|---|---|---|---|
| NLW (21+) £12.21/hr | £25,520 | £1,862 | £22,350 | 12.4% |
| Age 18–20 £10.00/hr | £22,710 | £1,671 | £20,050 | 11.7% |
| Under 18 / Apprentice £7.55/hr | £15,764 | £1,183 | £14,200 | 9.9% |
Your take-home pay (net pay) is your gross salary minus all statutory deductions. For minimum wage workers in England, Wales and Northern Ireland, the main deductions are:
The personal allowance for 2026/27 is £12,570. You pay 20% basic rate tax on earnings between £12,571 and £50,270. At the NLW of £25,520, only £12,950 is taxable at 20%, giving an income tax bill of approximately £2,590 per year.
Employee NI is charged at 8% on earnings between the primary threshold (£12,570) and the upper earnings limit (£50,270), and 2% above £50,270. At £25,520, you pay 8% on £12,950 — around £1,036 per year.
If you are auto-enrolled, your employer must contribute a minimum of 3% and you contribute a minimum of 5% of qualifying earnings. Employee pension contributions reduce your taxable income before tax is calculated.
Repayments are deducted at source via PAYE above the relevant plan threshold. Full-time NLW workers at £25,520 are below the Plan 2 threshold (£28,470) and only marginally above the Plan 1 threshold (£24,990).
Beyond paying the wage, employers pay Class 1 secondary NI at 15% on earnings above the secondary threshold (£5,000 for 2026/27), plus a minimum 3% pension contribution on qualifying earnings. The table below shows the estimated total cost of employing a full-time worker at each NMW band.
| Rate | Gross Salary | Employer NI (est.) | Pension (3%) | Total Employer Cost |
|---|---|---|---|---|
| NLW (21+) | £25,520 | £3,078 | £766 | £29,364 |
| Age 18–20 | £22,710 | £2,657 | £681 | £26,048 |
| Under 18 / Apprentice | £15,764 | £1,615 | £473 | £17,852 |
Employer NI = 15% × (gross salary − £5,000 secondary threshold). Pension = 3% of gross salary as a guide figure.
Age 25+ • 40 hrs/week • No pension
Age 25+ • 40 hrs/week • Auto-enrolled
Age 19 • 35 hrs/week • No pension
A full-time NLW worker pays an effective combined tax rate (income tax + NI) of just 12.4%. That's because the £12,570 personal allowance shields almost half of the NLW salary from income tax entirely. Workers earning below £12,570 pay no income tax at all.