£10.85 per hour — the 2026/27 Minimum Wage (Age 18–20) annual salary
Key takeaway: At £10.85/hr for a 40-hour week you earn £22,568 gross per year. After income tax and National Insurance, take-home is about £1,647 per month. At 37.5 hours it is about £1,563. Use the hours widget below, or the take-home calculator for pension and tax-code options.
Adjust your hours
Default is a 40-hour week (site-wide). Drag the slider for a different pattern. For pension, Scotland or a custom tax code, use the take-home calculator.
Annual take-home
£19,769
Weekly gross
£434.00
Annual gross
£22,568
Monthly take-home
£1,647
Net hourly
£9.50/hr
Income tax
£2,000
Employee NI
£800
Tax code 1257L · No pension · England/Wales/NI · 40 hrs/wk default · 2026/27
Need pension, student loan or a Scottish tax code? Open the take-home calculator with custom hours.
Calculate your exact monthly take-home on £12.71/hr
See net pay after Income Tax and 8% National Insurance on a standard contract.
£10.85/hr Take-Home by Hours Worked
| Hours | Gross / Yr | Tax + NI | Net / Mo | Net / Hr |
|---|---|---|---|---|
| 16 hrs | £9,027 | £0 | £752 | £10.85 |
| 20 hrs | £11,284 | £0 | £940 | £10.85 |
| 25 hrs | £14,105 | £430 | £1,140 | £10.52 |
| 30 hrs | £16,926 | £1,220 | £1,309 | £10.07 |
| 35 hrs | £19,747 | £2,010 | £1,478 | £9.74 |
| 37.5 hrs | £21,158 | £2,405 | £1,563 | £9.62 |
| 40 hrs | £22,568 | £2,800 | £1,647 | £9.50 |
| 45 hrs | £25,389 | £3,589 | £1,817 | £9.32 |
| 48 hrs | £27,082 | £4,063 | £1,918 | £9.22 |
What is £10.85 per hour?
£10.85 per hour is the official National Minimum Wage for workers aged 18 to 20 in the UK, effective from April 2026. This is a significant increase from previous years as the government moves toward a single adult rate.
Student jobs and part-time work
Many 18–20 year olds work part-time while studying. Because your Personal Allowance is £12,570, you won't pay any income tax at all if you work fewer than 22 hours a week at £10.85 an hour for the full year. For example, working 16 hours a week gives you £752 a month completely tax-free.
How tax is calculated at £10.85/hr
If you work 37.5 hours a week at £10.85 per hour, your gross annual salary is £21,158. Here is how your take-home pay is calculated for the 2026/27 tax year:
- Personal Allowance: The first £12,570 you earn is completely tax-free.
- Taxable Income: You pay 20% Income Tax on the remaining £8,588, which equals £1,718.
- National Insurance: You pay 8% NI on earnings above the £12,570 threshold, which comes to roughly £687.
Subtracting the tax and NI leaves you with a net take-home pay of £18,753 per year (or £1,563 per month).
Can you live on £10.85 per hour?
For many 18-20 year olds, £10.85 an hour (£1,563 monthly take-home) is manageable if living at home or sharing accommodation, but it can be a very tight budget if renting independently. Here is an example monthly budget working 37.5 hours a week:
- Monthly Take-Home: £1,563
- Rent (Shared House/Room): -£650
- Bills (Council tax, Energy, Water, Broadband): -£200
- Groceries: -£200
- Transport / Commute: -£120
- Money remaining for life & savings: £393
When do I move to £12.71?
You will automatically move up to the full National Living Wage of £12.71 per hour on your 21st birthday. If you are currently on an apprenticeship, you will move to your age-appropriate rate (or the full NLW) as soon as you complete the first 12 months of your apprenticeship if you are 19 or over.
Need a full payslip breakdown?
Use the detailed take-home calculator to see exactly what you keep at any hours, with annual, monthly and weekly figures and a full deductions breakdown.
Custom hours on the take-home calculator →Frequently Asked Questions
About this guide
This calculator is maintained by UKMinimumWage.co.uk using published GOV.UK rates for 2026/27. Last updated October 2026. This site is not HMRC-endorsed.