Minimum wage from April 2027, and the mistakes that cause underpayments
The National Living Wage rises to £13.21 an hour in April 2027. Most underpayments are not about the headline rate, but about deductions, unpaid time and salary sacrifice.
The National Living Wage and National Minimum Wage rise by 3.9% on 1 April 2027, following the Low Pay Commission’s recommendations. The accommodation offset, the most an employer can count towards minimum pay for living accommodation it provides, rises to £11.53 a day.
Rates from April 2026: £12.71, £10.85 and £8.
Show the data
| Aged 21 and over | £13.21 |
|---|---|
| Aged 18 to 20 | £11.27 |
| Under 18 and apprentices | £8.31 |
Where underpayments come from
- Charging staff for uniforms, tools or training, where it takes pay below the minimum.
- Unpaid time: opening up, closing down, handovers, compulsory training and travel between jobs.
- Salary sacrifice for pensions or benefits that takes cash pay below the minimum.
- Annual salaries that fall below the minimum once extra hours are counted.
- Birthdays: moving into a higher age band and the rate not being updated.
Checking your payroll
Work out the hourly rate for each pay period: pay that counts, divided by working time. Do it for salaried staff as well as hourly. HMRC enforces the minimum wage, and underpayments must be repaid at current rates, with penalties and public naming possible.
This insight is general information, not advice for your circumstances. Talk to us before acting on it.