Minimum Wage April 2027: Confirmed New Rates for Employers

The government has confirmed the minimum wage rates employers must pay from 1 April 2027. It published the figures on 28 October 2026, alongside the Autumn Budget, after accepting the Low Pay Commission's recommendations in full. Every rate rises by 3.9%.

One thing to watch: some early press reports gave the new National Living Wage as £13.20 an hour. The official GOV.UK figure is £13.21, so make sure that is the number that goes into your payroll software and your budgets.

The new minimum wage rates from April 2027

• National Living Wage (21 and over): £13.21 an hour, up 50p from £12.71

• 18 to 20-year-olds: £11.27 an hour, up 42p from £10.85

• 16 to 17-year-olds: £8.31 an hour, up 31p from £8.00

• Apprentice rate: £8.31 an hour, up 31p from £8.00

• Accommodation offset: £11.53 a day, up 43p from £11.10

The apprentice rate applies to apprentices under 19, and to apprentices aged 19 or over in the first year of their apprenticeship. After that, they move onto the rate for their age.

Why the gap for 18 to 20-year-olds hasn't closed

The government's longer-term aim is to extend the National Living Wage to everyone aged 18 and over. This year, though, the Low Pay Commission recommended pausing that move because demand for young workers has slowed. Instead, 18 to 20-year-olds get the same 3.9% rise as over-21s, so the gap between the two rates stays in place for another year. The Commission says there is still scope to lower the age limit later, particularly for 20-year-olds.

What the rise costs an employer

For a full-time employee on the National Living Wage working 37.5 hours a week, the 50p increase adds about £975 a year to gross pay. That is not the whole cost. Employer National Insurance at 15% adds roughly another £146 on that increase, because the £5,000 secondary threshold stays frozen. If you pay pension contributions on qualifying earnings at the 3% employer minimum, add around £29 more.

It is also worth thinking about staff paid just above the minimum. If a supervisor currently earns a little more than the team they look after, the new rates may wipe out that difference, and many employers choose to move those rates up too. Building that into your figures now avoids surprises in April.

What to check in payroll before April 2027

• Timing: the new rates apply from the first pay reference period starting on or after 1 April 2027. A monthly period that starts in late March can stay at the old rate until the next period begins.

• Birthdays: staff who turn 18 or 21 move up to the higher rate from their next pay reference period, so keep dates of birth up to date in payroll.

• Salaried staff: divide pay by the hours actually worked, including any unpaid overtime, training or required travel time. Salaries that look comfortable can fall below £13.21 an hour once those hours are counted.

• Salary sacrifice and deductions: pension or benefit salary sacrifice, uniform costs and other deductions that benefit the employer can take pay below the legal minimum.

• Accommodation: if you provide living accommodation, no more than £11.53 a day can count towards minimum wage pay.

• Apprentices: check who will turn 19 or finish their first year, as they move onto their age rate.

Most payroll software will update the rates automatically, but it will not know about unpaid hours or deductions. If you would rather hand the whole thing over, our payroll and auto-enrolment service picks up rate changes like this and flags staff who are close to the line.

Getting it wrong is expensive

HMRC enforces the minimum wage. Where workers have been underpaid, employers must repay the arrears at today's rates, can face a penalty of up to 200% of the arrears, and may be publicly named. Most underpayments we see are accidental, usually down to deductions or unpaid time rather than the headline hourly rate, which is why the checks above matter.

Need a hand with this? We're accountants in Bury, and our payroll service covers it for a fixed fee.

Talk it through with us

If you'd like to check what the April 2027 rates mean for your wage bill, book a free, no-obligation 30-minute chat by phone, Teams or at our Bury office, or see your fixed fee online in 2 minutes. Prefer to talk now? Call 0161 327 0047.

Sources: GOV.UK, 'LPC recommendations take the National Living Wage to £13.21' (28 October 2026); Low Pay Commission, advice to Government on 2027 minimum wage rates. This article is a general summary, not advice.