What is the 2027 minimum wage projection?
In June 2026 the Low Pay Commission published its projection for the April 2027 National Living Wage (21+). The best estimate is £13.18 per hour, up 3.7% from the current rate of £12.71. The projected range runs from £13.02 (low) to £13.34 (high), reflecting uncertainty in the economic outlook. These figures will be updated when the Government confirms the 2027 rate, typically in the autumn.
For context on how the 2026 rate landed and what operators paid, read the true cost of the April 2026 NMW rise and the Weekly Grind from 22 June 2026, which covers the LPC projection in more detail.
Why the all-in cost is bigger than the headline rate
The headline rate is only the starting point. Employers also absorb three compulsory on-costs that rise automatically when the hourly rate rises:
- Employer National Insurance. Charged at 15% on earnings above the £96 per week secondary threshold. A rate rise from £12.71 to £13.18 for a 30-hour worker adds roughly £1.40 a week in NI alone.
- Workplace pension. Minimum employer contribution is 3% of qualifying earnings. Higher rates mean higher pension contributions automatically.
- Holiday accrual. 12.07% covers the statutory 5.6 weeks for hourly workers. A rate rise lifts holiday pay in proportion because it is calculated as a percentage of earnings.
In practice, a 3.7% headline rise translates to roughly 4.5-5% on the true all-in wage bill once on-costs are included. Use the calculator above to model this across your own team. To model an arbitrary rise rather than the 2027 projection, use the Pay Rise Planner.
A note on under-21 rates
Only the 21+ National Living Wage is officially projected by the Low Pay Commission. The 18-20 rate and the under-18/apprentice rate are estimated by this calculator at the same percentage rise as the adult rate. In practice the 18-20 rate has been converging toward the adult rate in recent years and may rise by a higher percentage. Treat under-21 figures as a planning guide, not a firm forecast, and review them when the Government confirms the 2027 rates.
Assumptions and limitations
This calculator uses the LPC’s June 2026 projection. Employer NI thresholds (secondary threshold £96/week) and pension thresholds are assumed unchanged from current values. The figures will be updated when the 2027 rate is confirmed. All estimates are illustrative and should not be treated as financial advice. If you need precise payroll costings, consult a payroll professional or accountant.
Frequently asked questions
What will the minimum wage be in 2027?
The Low Pay Commission’s June 2026 projection puts the 2027 National Living Wage (for workers aged 21+) at £13.18 per hour (best estimate), with a range of £13.02 (low) to £13.34 (high). This is a rise of approximately 3.7% from the current 2026 rate of £12.71. The Government will confirm the final rate in autumn 2026.
How much will the 2027 minimum wage rise cost employers?
The all-in cost depends on team size, hours, and NI categories. A typical minimum-wage employee working 30 hours a week would cost an additional £300-£380 per year once employer NI, pension, and holiday accrual are included on top of the headline rate rise. Use the calculator above with your own team to get a precise figure.
When is the 2027 minimum wage confirmed?
The Government typically confirms the following year’s rates in autumn, following recommendations from the Low Pay Commission. The June 2026 LPC projection is an indicative range - not the final confirmed rate. This calculator will be updated once the 2027 rate is confirmed.
Does this calculator include employer NI and pension?
Yes. The calculator includes employer National Insurance at 15% above the £96 per week secondary threshold, workplace pension at the statutory minimum 3% of qualifying earnings, and holiday accrual at 12.07% (5.6 weeks statutory). These are the same on-costs included in the Pay Rise Planner.