National Living Wage 2026: What It Means for Industrial and Warehouse Workers
The National Living Wage (NLW) is the legal minimum that employers must pay workers aged 21 and over. Understanding the current rates, how they affect your pay, and what to do if you are being underpaid is essential.
Current Rates (from April 2025)
- 21 and over (National Living Wage) — £12.21 per hour
- 18 to 20 — £10.00 per hour
- Under 18 — £7.55 per hour
- Apprentice rate — £7.55 per hour (first year of apprenticeship or under 19)
These rates are reviewed annually each April. The government has signalled continued increases, with the NLW expected to rise further in April 2026.
What Counts Toward Minimum Wage
The following do count toward your minimum wage calculation:
- Basic hourly pay
- Performance bonuses and commission
- Piece rates (per-item payments)
The following do not count:
- Overtime premium — only the basic rate portion counts
- Shift premiums — only the basic rate portion counts
- Tips and gratuities
- Expenses and travel allowances
- Benefits in kind (company car, health insurance, etc.)
- Pension contributions from your employer
How It Affects Industrial and Warehouse Workers
The NLW has a direct impact on starting rates in the sector:
- Entry-level warehouse operative roles are typically advertised at or just above the NLW
- Each NLW increase compresses the gap between entry-level and skilled roles, creating pressure for employers to raise rates across the board
- Forklift operators, team leaders, and skilled workers should expect their rates to increase proportionally when the NLW rises
- Night shift and overtime premiums are calculated on top of the NLW base, so these also increase