Weekly, monthly and yearly pay
Employer cost of the minimum wage
Enter the worker's age, apprenticeship and weekly hours: the tool gives the yearly wages, employer National Insurance and cost per paid hour.
What a minimum wage worker costs
Cost per year before pension
£22,051.74
| Wages | £19,827.60 |
| Employer National Insurance | £2,224.14 |
| Cost per paid hour | £14.14 |
Employer rate 15% above £5,000 a year (2026 to 2027). Employment Allowance and pension not included.
The cost of a minimum wage worker to an employer is the wage plus employer National Insurance, before any pension contribution. In 2026 to 2027 employer National Insurance is 15% of earnings above £5,000 a year. A worker aged 25 on 37.5 hours a week at the National Living Wage of £12.71 earns £24,784.50, which brings £2,967.68 of employer National Insurance, for a total of £27,752.18 a year. For workers under 21, and for apprentices under 25, the employer rate is 0% on earnings up to £50,270, so at minimum wage pay the cost is the wage alone: £21,157.50 for a full-time worker aged 18 to 20. Workers aged 22 or over earning at least £10,000 a year must also be enrolled in a workplace pension, with a minimum employer contribution of 3% of qualifying earnings. The Budget of 28 October 2026 kept the National Insurance thresholds for 2027 to 2028, so with the rates announced for April 2027 the 37.5-hour worker aged 25 would cost £28,873.43 before pension.
Minimum wage per week, month and year
Legal minimum per hour
£12.71
| Rate that applies | National Living Wage (21 and over) |
| Per week | £476.63 |
| Per month | £2,065.38 |
| Per year (52 weeks) | £24,784.50 |
Rates and rules read by Radif Partners · Editorial policy · Method
Wages and National Insurance by type of worker
The rates and thresholds for employers in 2026 to 2027 set employer National Insurance at 15% above the secondary threshold of £5,000 a year, or £96 a week. Two groups have a higher threshold of £50,270: employees under 21 and apprentices under 25.
| Worker, 37.5 hours a week | Wages a year | Employer National Insurance | Cost before pension | Cost per paid hour |
|---|---|---|---|---|
| Aged 25, National Living Wage | £24,784.50 | £2,967.68 | £27,752.18 | £14.23 |
| Aged 21, National Living Wage | £24,784.50 | £2,967.68 | £27,752.18 | £14.23 |
| Aged 19, 18 to 20 rate | £21,157.50 | £0 | £21,157.50 | £10.85 |
| Aged 17, 16 to 17 rate | £15,600 | £0 | £15,600 | £8.00 |
| Apprentice aged 23, first year | £15,600 | £0 | £15,600 | £8.00 |
The 21st birthday is a double step for the employer: the hourly rate rises to the National Living Wage and the 0% National Insurance rate ends. An apprentice keeps the relief until 25, which is why a first-year apprentice of 23 costs no more than the wage. Eligible employers can also reduce their yearly National Insurance bill through the Employment Allowance, which is left out of these figures.
Part-time staff and the secondary threshold
Employer National Insurance only starts above £5,000 a year, so on short contracts it is a small share of the cost.
| Hours a week, aged 25 | Wages a year | Employer National Insurance | Share of wages |
|---|---|---|---|
| 8 | £5,287.36 | £43.10 | 0.8% |
| 16 | £10,574.72 | £836.21 | 7.9% |
| 25 | £16,523 | £1,728.45 | 10.5% |
| 37.5 | £24,784.50 | £2,967.68 | 12.0% |
What a minimum wage worker costs
Cost per year before pension
£16,926
| Wages | £16,926 |
| Employer National Insurance | £0 |
| Cost per paid hour | £10.85 |
Under 21, or apprentice under 25: employer rate 0% up to £50,270 a year.
Pensions on top
Under the workplace pension rules, a worker aged 22 up to State Pension age who earns at least £10,000 a year must be enrolled automatically. The minimum is 3% from the employer and 5% from the worker, on qualifying earnings rather than on the whole wage, so the figures in the tables above do not include it. A full-time worker of 25 on the National Living Wage is above the trigger; a 21 year old on the same pay is not yet of enrolment age. The employer's contribution does not count towards minimum wage pay, as HMRC's guidance lists it among benefits in kind.
April 2027 and the cost of getting it wrong
The Budget's annex of rates keeps the 2027 to 2028 National Insurance thresholds at their current levels, so the cost rises only with the wages. With the rates announced on 28 October 2026, a full-time worker of 25 would cost £28,873.43 a year before pension, against £27,752.18 now.
Underpaying costs more than paying. Under HMRC's enforcement rules, a notice of underpayment requires the arrears, recalculated at the current rate, plus a penalty of 200% of the arrears, up to £20,000 per worker, halved if paid within 14 days. Records must be kept for 6 years, and in a tribunal or civil claim it is for the employer to prove the minimum was paid. The employer penalties page sets out the sanctions in full.