National Minimum Wage from April 2026: the new rates for agency temps and what the rise costs a 100-temp book

The National Minimum Wage rates changed on 1 April 2026. The adult rate rose by 50p, and the two youngest age bands rose by more in percentage terms. An agency that pays temps on fixed charge rates set last year has a margin problem on every temp near the minimum, and the numbers are easy to work out.

The rates

GOV.UK gives these hourly rates from April 2026, against those that applied from April 2025:

The apprentice rate applies to an apprentice who is under 19, or aged 19 or over and in the first year of the apprenticeship. After that first year, the age band applies.

Agency temps are covered

GOV.UK's agency worker page says "You're entitled to the National Minimum Wage for all the hours you work, even if you have not recorded them on a timesheet." For an agency, that last clause matters on timesheet gaps: a temp whose timesheet misses a handover or a start-up period is still owed those hours.

What it costs: 100 temps at 37.5 hours

Take 100 temps on the 21-and-over rate, each working 37.5 hours a week.

• Weekly pay per temp before the rise: £12.21 × 37.5 = £457.88.
• Weekly pay per temp after: £12.71 × 37.5 = £476.63.
• Difference per temp: £18.75 a week.
• For 100 temps: £1,875 a week.

Employer National Insurance is 15% on pay above £96 a week (the weekly secondary threshold). Every one of these temps is well above the threshold, so the whole £18.75 attracts 15%, which is £2.81 per temp and £281.25 for 100. The weekly cost of the rise is £2,156.25. Over 52 weeks that is £112,125.

That figure holds only if every temp stays on exactly the minimum and the charge rate does not move. Employer National Insurance for under-21s is calculated differently, so we have not applied the 15% to the lower age bands. Check the payroll for those workers.

The youngest bands show the pay effect alone. A temp aged 18 to 20 on 37.5 hours now earns at least £406.88 a week, £31.88 more than last year. Under 18 at 37.5 hours is £300.00 a week at the minimum.

What to check this week

1. List every temp paid within 50p of the old rate and move them to the new one in payroll.
2. Re-check every assignment with a charge rate set before April. Our temp margin calculator shows the margin once employer costs are included.
3. Check each temp's age band, since a birthday can move a worker to a higher rate. Flag those who turn 21 in the next quarter.
4. Remember that rolled-up holiday pay is separate from the hourly rate. See our guide to rolled-up holiday pay for agency temps.
5. Temps passing 12 weeks may move to equal pay with permanent staff, which may be higher than the minimum. Our 12-week rule calculator gives the date.

Overlyft can set up an AI assistant that flags every assignment whose pay rate sits within a set margin of the minimum and drafts the charge-rate conversation for the consultant to hold.

This is general information, not employment law advice.