Minimum Wage Under 18 in 2026/27: Common Myths and What You Really Earn

Introduction: Understanding the Minimum Wage for Under 18s

When people talk about the UK minimum wage, they often focus on the National Living Wage for adults aged 21 and over. But the rules for younger workers are just as important — and frequently misunderstood. The minimum wage under 18 is a specific legal rate that applies to 16 and 17 year olds (and to apprentices in certain circumstances). In this article, we’ll clear up common myths, explain what you actually take home, and show how the rates compare to average UK salaries.

The 2026/27 Rates: What the Law Says

From 1 April 2026, the National Minimum Wage for workers aged 16-17 is £8.00 per hour, up from £7.55 (a 6% increase). Apprentices under 19, or those aged 19 and over in their first year, also receive £8.00 per hour. These rates are set by the government following recommendations from the Low Pay Commission, and they apply across the whole UK.

For a full-time worker on 37.5 hours per week, 52 weeks a year, the gross annual salary at £8.00 per hour is approximately £15,600. That’s significantly lower than the median full-time UK salary of £39,039 (ONS ASHE, April 2025), but it’s a legal floor — employers cannot pay less.

Myth 1: “Under 18s don’t have a minimum wage”

This is false. The National Minimum Wage Act 1998 sets hourly rates for all workers, including those under 18. The rate for 16-17 year olds is lower than the adult rate, but it is still a legal entitlement. If you are 16 or 17 and working (not an apprentice in the first year), you must be paid at least £8.00 per hour.

Myth 2: “Under 18s don’t pay tax”

Many people assume that because young workers earn less, they are exempt from income tax. That’s not entirely correct. The personal allowance for the 2026/27 tax year is £12,570. If your gross annual earnings exceed that amount, you will pay income tax at 20% on the excess. A full-time under-18 worker earning £15,600 would therefore pay tax on £3,030, which comes to £606 per year (about £50 per month). National Insurance contributions may also apply above the primary threshold, though the exact amount depends on the 2026/27 NI bands (not yet confirmed at the time of writing).

If you work part-time and earn below £12,570, you pay no income tax at all. That’s a common situation for students and those in school.

Myth 3: “Apprentices can be paid less than £8.00”

The apprentice rate is also £8.00 per hour for eligible apprentices. However, this rate only applies to apprentices under 19, or those aged 19 and over in the first year of their apprenticeship. After the first year, the apprentice must be paid the appropriate minimum wage for their age (e.g., £10.85 for 18-20 year olds, or £12.71 for 21+). Paying an apprentice less than £8.00 is illegal.

Take-Home Pay: What You Actually Earn

Your take-home pay depends on your exact hours, any overtime, and deductions like income tax, National Insurance, and pension contributions. For a full-time under-18 worker at £8.00 per hour, the gross annual salary is about £15,600. After income tax and NI, the net annual pay is likely to be in the region of £14,500 to £15,000 (assuming no pension or student loan deductions). That works out to roughly £1,200 to £1,250 per month.

For comparison, a full-time worker on the National Living Wage (£12.71 per hour) takes home about £21,364 per year in England, Wales and Northern Ireland (after tax and NI), or about £1,780 per month. The gap reflects both the lower hourly rate and the lower tax burden on the under-18 worker (since a larger portion of their income is within the personal allowance).

Scotland’s Different Tax Bands

If you live and work in Scotland, your income tax is calculated using Scottish rates. For the 2026/27 tax year, Scotland has a 19% starter rate on the first slice of taxable income, which can slightly reduce your tax bill compared to the rest of the UK. For a full-time under-18 worker, the difference is small — perhaps £20-£30 per year — but it’s worth noting.

How the Under-18 Minimum Wage Compares to Average Salaries

The median full-time UK salary is £39,039 (ONS ASHE, April 2025). The mean (average) is higher, around £45,800. The under-18 minimum wage at full-time hours is less than half of the median. That’s expected, because younger workers typically have less experience and often work part-time or in entry-level roles. However, it’s important to remember that the minimum wage is a floor, not a target. Many employers pay above the legal minimum, especially in sectors with labour shortages.

Common Mistakes to Avoid

• Assuming the under-18 rate applies to all young workers: The rate for 18-20 year olds is £10.85 per hour, not £8.00. The under-18 rate only applies to 16 and 17 year olds (and apprentices).
• Thinking that tips or bonuses can count towards the minimum wage: Tips, service charges, and discretionary bonuses do not count towards the minimum wage. Your basic hourly pay must meet the legal rate.
• Believing that under 18s don’t get holiday pay: All workers, including those under 18, are entitled to paid annual leave. The statutory minimum is 5.6 weeks per year (pro-rata for part-time).
• Ignoring the accommodation offset: If your employer provides accommodation, they can deduct up to £11.10 per day from your wages. This is a legal maximum, not a default.

What to Do If You’re Paid Below the Minimum Wage

If you believe you are being paid less than the legal minimum wage, you can report it to HMRC. They have the power to investigate and order back pay. You can also speak to your employer directly or seek advice from a union or Citizens Advice. Remember, it is illegal for an employer to dismiss or treat you unfairly for raising a minimum wage complaint.

Conclusion

The minimum wage under 18 is a clear legal right, but it’s surrounded by myths. The rate for 2026/27 is £8.00 per hour, and it applies to 16-17 year olds and eligible apprentices. Your take-home pay will be lower than the adult National Living Wage, but you may pay little or no income tax if your earnings are below the personal allowance. Always check your payslip and know your rights.

For more context on UK salaries, see our UK Average Salary page and explore salary data for detailed breakdowns by age, region, and sector.

Frequently Asked Questions

What is the minimum wage for under 18s in 2026/27?

From 1 April 2026, the National Minimum Wage for workers aged 16-17 (not apprentices) is £8.00 per hour. Apprentices under 19 or in their first year also receive £8.00 per hour. These rates are set by the government and are legal minimums; employers cannot pay less.

Do under 18s have to pay income tax?

Yes, if their annual earnings exceed the personal allowance of £12,570. A full-time under-18 worker earning around £15,600 gross would pay income tax on the excess at 20% (basic rate). However, part-time workers earning below £12,570 pay no income tax. National Insurance contributions may also apply above the primary threshold.

Can an employer pay an under 18 apprentice less than £8.00?

No. The apprentice rate of £8.00 per hour applies to all apprentices under 19, or those aged 19 and over in the first year of their apprenticeship. After the first year, the apprentice must be paid the appropriate minimum wage for their age. Paying less is illegal and can lead to enforcement action by HMRC.