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NMW (Age 18-20) — 16 hours per week After Tax 2025-26

Age 18-20 NMW · £10.00/hr · Gross: £8,320/year

Annual take-home
£8,320
Monthly
£693
Weekly
£160
Effective rate
0%
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What do you earn?
Annual gross salary, before any deductions.
£

NMW (Age 18-20) — 16 hours per week — full tax breakdown 2025-26

Item Annual Monthly
Gross pay £8,320 £693
Personal Allowance (tax-free) £12,570 £1,048
Income Tax −£0 −£0
National Insurance (8%) −£0 −£0
Net take-home £8,320 £693
Total deductions: £0 · Effective rate: 0%

No Income Tax payable. At 16 hours/week at £10.00/hr, your annual gross of £8,320 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 — 16 hours a week

Working 16 hours per week at the Age 18-20 NMW of £10.00/hr, your weekly gross is £160 and your annual gross is £8,320 (based on 52 weeks). After Income Tax of £0 and National Insurance of £0, your take-home pay is £8,320/year, which is £693/month or £160/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 — 16 hrs/week at £10.00/hr

Gap vs NLW (£12.21/hr)
−£1,839/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
48% below
UK single adult benchmark
Full-time (37.5h) net
£17,560/yr
£1,463/month
Fill £20k ISA @ 10% savings
290 months
£69/month from net

At £10.00/hr you currently earn £1,839/year less than the £12.21/hr National Living Wage rate paid to workers aged 21+ at the same 16 hours/week. That is £35 less per week and £153 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 £8,320 sits 48% 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 £32.

Scaling up to a full-time 37.5-hour week at the same £10.00/hr would give an annual gross of £19,500 and a take-home of £17,560/year (£1,463/month). On your current 16 hours, saving 10% of your take-home (£69/month) into an ISA would take about 290 months to reach the £20,000 annual allowance.

Further reading

Frequently asked questions

How much do I take home on minimum wage working 16 hours a week?

Working 16 hours/week at £10.00/hr (NMW (Age 18-20) — 16 hours per week), your annual gross is £8,320. After Income Tax (£0) and National Insurance (£0), you take home £8,320/year — £693/month or £160/week.

Do I pay Income Tax on minimum wage at 16 hours a week?

No. At 16 hours/week at the minimum wage, your annual gross is £8,320 — 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 16 hours at the minimum wage?

Working 16 hours/week at £10.00/hr gives a weekly gross of £160 and an annual gross of £8,320 (52 weeks). Your weekly take-home after tax is approximately £160.

What is the NMW / NLW rate for Age 18-20 NMW in 2025-26?

Workers aged 18 to 20 are entitled to the National Minimum Wage of £10.00/hr from April 2025. The higher National Living Wage (£12.21/hr) applies from age 21.

How much tax do I actually pay on minimum wage working 16 hours a week?

The effective tax rate (Income Tax + NI as % of gross) on £8,320 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 18-20 are entitled to the NMW of £10.00/hr — lower than the National Living Wage (£12.21/hr) that applies from age 21. At 16 hours/week, the age 18-20 rate gives a gross of £8,320/year (£160/week). When you turn 21, your employer must automatically move you to £12.21/hr or face HMRC enforcement action.

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