How to apply National Minimum Wage (NMW) rates from April 2026

Each year, updates to the National Minimum Wage (NMW) and National Living Wage rates require close attention. Although the new 2026 rates take effect from 1 April, applying them correctly in payroll is not always straightforward.

The key rule is that the new rates apply from the first full pay reference period starting on or after 1 April, in line with the National Minimum Wage Regulations 2015 (regulation 4(2)):

“The applicable NMW rate is the one in force on the first day of the pay reference period.”

In practice, this means some employees may not receive the new rates immediately from 1 April. Instead, it depends on when their pay reference period begins—not the payment date. This often causes confusion, especially when a pay period overlaps March and April.

For example, consider a monthly payroll with a pay reference period from 21 March to 20 April 2026, paid on 25 April. Even though most of this period falls after 1 April, the old NMW rate applies to the entire period, because it started before the rate change:

• 21 March – 20 April → old NMW rate applies

• 21 April – 20 May → new NMW rate applies

Importantly, pay reference periods should not be split—one rate applies to the whole period based on its start date.