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NMW (Age 16-17) — 20 hours per week After Tax 2025-26

Age 16-17 NMW · £7.55/hr · Gross: £7,852/year

Annual take-home
£7,852
Monthly
£654
Weekly
£151
Effective rate
0%
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What do you earn?
Annual gross salary, before any deductions.
£

NMW (Age 16-17) — 20 hours per week — full tax breakdown 2025-26

Item Annual Monthly
Gross pay £7,852 £654
Personal Allowance (tax-free) £12,570 £1,048
Income Tax −£0 −£0
National Insurance (8%) −£0 −£0
Net take-home £7,852 £654
Total deductions: £0 · Effective rate: 0%

No Income Tax payable. At 20 hours/week at £7.55/hr, your annual gross of £7,852 is below the £12,570 Personal Allowance. You pay no Income Tax. Your earnings are also below the NI Primary Threshold — no National Insurance is deducted.

Minimum wage take-home pay — 20 hours a week

Working 20 hours per week at the Age 16-17 NMW of £7.55/hr, your weekly gross is £151 and your annual gross is £7,852 (based on 52 weeks). After Income Tax of £0 and National Insurance of £0, your take-home pay is £7,852/year, which is £654/month or £151/week net.

These figures use the standard tax code 1257L, no pension contributions, and no student loan deductions. Use the calculator above to adjust for your specific circumstances — including pension contributions that reduce your taxable income and National Insurance liability.

Personalised insights — 20 hrs/week at £7.55/hr

Gap vs NLW (£12.21/hr)
−£4,846/yr
what age 21+ earns at same hours
Keep per £1
100%
after Income Tax + NI
Tax per working day
£0
260-day year
vs £16k poverty line
51% below
UK single adult benchmark
Full-time (37.5h) net
£14,120/yr
£1,177/month
Fill £20k ISA @ 10% savings
308 months
£65/month from net

At £7.55/hr you currently earn £4,846/year less than the £12.21/hr National Living Wage rate paid to workers aged 21+ at the same 20 hours/week. That is £93 less per week and £404 less per month — a real step-up to expect when you turn 21 (18-20 band) or complete year 2 of your apprenticeship (apprentice band).

Your annual gross of £7,852 sits 51% below the commonly cited UK single-adult poverty benchmark of £16,000. You keep 100% of each pound earned after Income Tax and NI, and around £0 leaves your paycheck in combined tax/NI per working day (260-day year). Daily net reaching your bank account: roughly £30.

Scaling up to a full-time 37.5-hour week at the same £7.55/hr would give an annual gross of £14,723 and a take-home of £14,120/year (£1,177/month). On your current 20 hours, saving 10% of your take-home (£65/month) into an ISA would take about 308 months to reach the £20,000 annual allowance.

Further reading

Frequently asked questions

How much do I take home on minimum wage working 20 hours a week?

Working 20 hours/week at £7.55/hr (NMW (Age 16-17) — 20 hours per week), your annual gross is £7,852. After Income Tax (£0) and National Insurance (£0), you take home £7,852/year — £654/month or £151/week.

Do I pay Income Tax on minimum wage at 20 hours a week?

No. At 20 hours/week at the minimum wage, your annual gross is £7,852 — below the £12,570 Personal Allowance. You pay zero Income Tax. Your employer may still operate PAYE, but will return any over-deducted tax.

How much do I earn per week working 20 hours at the minimum wage?

Working 20 hours/week at £7.55/hr gives a weekly gross of £151 and an annual gross of £7,852 (52 weeks). Your weekly take-home after tax is approximately £151.

What is the NMW / NLW rate for Age 16-17 NMW in 2025-26?

Workers aged 16 and 17 are entitled to the National Minimum Wage of £7.55/hr from April 2025. They are not yet entitled to the National Living Wage or the 18-20 NMW rate.

How much tax do I actually pay on minimum wage working 20 hours a week?

The effective tax rate (Income Tax + NI as % of gross) on £7,852 annual gross is 0%. Income Tax is £0 and National Insurance is £0. Total deductions: £0/year.

What is the difference between the National Minimum Wage and the National Living Wage for this age group?

Workers aged 16-17 are entitled to the NMW of £7.55/hr — the same rate as year-one apprentices. At 20 hours/week, this gives a gross of £7,852/year (£151/week). The next step-up is to £10.00/hr at age 18, and then to the National Living Wage of £12.21/hr at age 21.

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