National Living Wage from April 2027: what one employee costs your business
Pay at the April 2027 rate for the age band, plus employer National Insurance and the minimum pension contribution, per employee per year.
From April 2027 the National Living Wage is £13.21 an hour, up from £12.71. Source: Low Pay Commission — LPC recommendations take the National Living Wage to £13.21 (28 October 2026) (from April 2027 (announced)).
| Rate | From April 2026 | From April 2027 |
|---|---|---|
| National Living Wage (21 and over) | £12.71 | £13.21 |
| 18 to 20 year old rate | £10.85 | £11.27 |
| 16 to 17 year old rate | £8.00 | £8.31 |
| Apprentice rate | £8.00 | £8.31 |
Sources: GOV.UK — National Minimum Wage and National Living Wage rates (from April 2026 (in force)); Low Pay Commission — LPC recommendations take the National Living Wage to £13.21 (28 October 2026) (from April 2027 (announced)).
How it is worked out
- Pay: the hourly rate × hours × 52 weeks.
- Employer National Insurance: 15% of pay above the £5,000 a year secondary threshold. For under-21s and apprentices under 25 the employer rate is 0% up to £50,270 a year. Source: GOV.UK — Rates and thresholds for employers 2026 to 2027 (6 April 2026 to 5 April 2027); GOV.UK — Rates and thresholds for employers 2026 to 2027 (6 April 2026 to 5 April 2027).
- Minimum workplace pension: the employer's 3% of earnings between £6,240 and £50,270 a year, in most automatic enrolment schemes. Source: GOV.UK — Workplace pensions: what you, your employer and the government pay (from April 2019 (in force)).
Which year's thresholds. The National Insurance rates and thresholds are those for 6 April 2026 to 5 April 2027, the latest GOV.UK has published; the April 2027 wage rates take effect before the 2027 to 2028 thresholds are known, so the National Insurance and pension lines may change when they are.
Not included. Holiday pay above the weeks worked, the Employment Allowance (which can reduce your business's total employer National Insurance bill, not one employee's), the apprenticeship levy, sick pay and any other benefits.
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Related
- National Living Wage from April 2027: the confirmed rates
- Budget 2026 and small business costs
- Free cost exposure check
Automated analysis for information only. Not investment advice. Read the full disclaimer.