A minimum wage is the lowest hourly rate an employer may legally pay. It sounds simple, but the details matter: rates depend on age in the UK, on the state and even the city in the US, and they usually change once a year. This guide lists the rates in force in October 2026 for the main English-speaking countries, converts them into annual and take-home figures, and explains how each country decides the number.
This guide is general information, not legal or payroll advice. Always check the official government source for your country before setting pay.
UK minimum wage rates from April 2026
The UK has a single set of rates for England, Scotland, Wales and Northern Ireland. They rose on 1 April 2026, following recommendations by the Low Pay Commission:
| Rate | Hourly rate from 1 April 2026 | Previous rate |
|---|---|---|
| National Living Wage (21 and over) | £12.71 | £12.21 |
| 18–20 year olds | £10.85 | £10.00 |
| 16–17 year olds | £8.00 | £7.55 |
| Apprentice rate | £8.00 | £7.55 |
| Accommodation offset (per day) | £11.10 | £10.66 |
The apprentice rate applies to apprentices under 19, or aged 19 and over in the first year of their apprenticeship. After that, they must receive the rate for their age.
What £12.71 an hour means per year
For a full-time worker on 37.5 hours a week:
- Weekly: 12.71 × 37.5 = £476.63
- Annual: 476.625 × 52 = £24,784.50
- Monthly: £24,784.50 ÷ 12 ≈ £2,065.38
Under the 2026/27 rules for England, Wales and Northern Ireland, income tax is 20% above the £12,570 personal allowance and employee National Insurance is 8% above the same point. That gives roughly:
- Income tax: (24,784.50 − 12,570) × 20% = £2,442.90
- National Insurance: 12,214.50 × 8% = £977.16
- Take-home: about £21,364 a year, or £1,780 a month, before any pension contributions or student loan repayments.
For the full breakdown, see our gross to net salary guide.
Recent history of the UK National Living Wage
| From April | Rate (age 23+ until 2024, 21+ from 2024) | Change |
|---|---|---|
| 2022 | £9.50 | +6.6% |
| 2023 | £10.42 | +9.7% |
| 2024 | £11.44 | +9.8% |
| 2025 | £12.21 | +6.7% |
| 2026 | £12.71 | +4.1% |
The government’s target has been for the National Living Wage to equal two-thirds of median hourly earnings, a goal that was reached in 2024. The 18–20 rate is being moved closer to the adult rate, which is why it rose faster in 2026 (8.5%).
National Living Wage vs Real Living Wage
The Real Living Wage is a voluntary benchmark set by the Living Wage Foundation, based on the cost of living. Accredited employers commit to paying it to all staff. It is higher than the legal minimum, with a separate London rate, and is usually announced each autumn. Paying it is a choice; paying the National Living Wage is the law.
US minimum wage in 2026
The federal minimum wage is $7.25 an hour, set under the Fair Labor Standards Act (FLSA) and unchanged since July 2009. Full-time at 40 hours a week for 52 weeks, that is $15,080 a year.
In practice, most American workers are covered by a higher state or local rate. Where federal, state and local laws overlap, the employer must pay the highest one. Examples for 2026:
| Jurisdiction | Hourly minimum in 2026 |
|---|---|
| Federal | $7.25 |
| Washington, DC | $17.95 |
| Washington State | $17.13 |
| California (statewide) | $16.90 |
Some cities (for example Seattle, Denver and several in California) set even higher local rates, and California has a separate $20 minimum for fast-food restaurant chains. Around twenty states still use the federal $7.25. Many states adjust their rate every January in line with inflation.
Tipped workers
Under federal law, employers may pay tipped employees a cash wage of $2.13 an hour if tips bring total pay up to at least $7.25. Several states, including California and Washington, do not allow a tip credit at all.
Other countries at a glance
| Country | Minimum wage 2026 | Notes |
|---|---|---|
| Ireland | €14.15 per hour (age 20+) | From 1 January 2026; lower rates for under-20s |
| Germany | €13.90 per hour | From 1 January 2026; €14.60 planned for 2027 |
| Canada (federal) | C$18.15 per hour | From 1 April 2026; applies to federally regulated sectors; each province sets its own rate |
| Australia | A$26.44 per hour (A$1,004.90 per 38-hour week) | From the first full pay period on or after 1 July 2026 |
If you work in Türkiye or pay staff there, our Turkey salary calculator converts the Turkish minimum wage and other salaries from gross to net.
How minimum wages are set
- UK: the independent Low Pay Commission consults employers and unions and recommends new rates each autumn; the government almost always accepts them, and they apply from April.
- US: the federal rate can only change through an act of Congress. States set their own rates by legislation or ballot measures, and many index them to inflation.
- Ireland: a Low Pay Commission recommends; the rate changes each January.
- Germany: an independent Mindestlohnkommission of employers, unions and academics proposes the rate.
- Canada: the federal rate is indexed to the Consumer Price Index each April.
- Australia: the Fair Work Commission holds an Annual Wage Review and decides in June.
Common mistakes employers make
- Deductions that push pay below the minimum. In the UK, deductions for uniforms, tools or certain accommodation charges can take a worker below the legal rate, which counts as underpayment.
- Unpaid working time. Compulsory training, travel between assignments and time spent on security checks may count as working time.
- Salaried staff with long hours. Divide total pay by actual hours worked; a salary can fall below the hourly minimum when overtime is unpaid.
- Missing the April or January change. Pay must rise from the first pay reference period that starts on or after the change date.
- Wrong age band. Workers must move to the higher rate from the pay period after their birthday.
Checklist
- Find the rate for the worker’s age (UK) or location (US), and use the highest rate that applies.
- Recalculate hourly pay for salaried staff using real hours worked.
- Check deductions do not take pay below the minimum.
- Diarise the annual change date: 1 April (UK, Canada federal), 1 January (Ireland, Germany, many US states), 1 July (Australia).
- Keep payroll records; in the UK, HMRC can name employers and claw back arrears with penalties.
To see what a given hourly rate means after tax, our percentage formulas guide helps with pay-rise calculations.