New minimum wage & national insurance rates from April

1 April 2026

The UK's beauty and hair industry is bracing for increased operating costs as significant rises to the National Minimum Wage (NMW) and National Living Wage (NLW) come into force from 1st April 2026, alongside additional National Insurance (NI) changes kicking in from 6th April 2026.

For salons, many of which rely heavily on junior members of staff and apprentices, these changes represent a substantial jump in wage bills.

New UK wage rates from 1st April 2026

National Living Wage (21+): £12.71 per hour, up from £12.21 – a 4.1% increase.
National Minimum Wage for 18–20 year olds: £10.85 per hour, up from £10.00 – an 8.5% rise.
National Minimum Wage for 16–17 year olds and apprentices: £8.00 per hour – a 6% uplift

National Insurance changes from 6th April 2026

Just days after the new wage rates take effect, businesses must also adjust to new National Insurance rules.

Employer NI rate remains at 15%, following the previous year's increase.
The Secondary Threshold remains reduced at £5,000, meaning NI contributions apply earlier across payroll.
Employment Allowance increased to £10,500, with the previous £100,000 eligibility cap removed, offering potential relief to some businesses.
The Lower Earnings Limit rises to £6,708 annually from 6th April.
NI thresholds remain frozen until 2028, increasing the long‑term burden as wages rise.

Failure to pay the right wage and NI rates

Failure to comply with the new wage and NI rules carries serious consequences for beauty and hair businesses. Employers who do not pay the legal National Minimum or National Living Wage must repay all underpaid wages in full and can face substantial financial penalties.

HMRC may also publicly name non‑compliant businesses, damaging their reputation, a risk that can be particularly harmful in a client‑trust‑driven industry like beauty.

In more serious cases, deliberate underpayment can constitute a criminal offence, triggering investigation and legal action.

Failing to pay the correct National Insurance contributions to HMRC can lead to backdated liabilities, penalties, interest charges and expanded payroll compliance checks, especially as NI thresholds and rules tighten for 2026.

What employers should action now

Audit your staff list and update all wage rates ahead of your first April payroll.
Update payroll software to ensure NI and wage changes are applied correctly.
Model staffing costs for the entire 2026/27 financial year to avoid cashflow surprises.
Communicate changes transparently to your team, who may be affected by tax band freezes and NI adjustments.

What employees should do if you're not paid the correct wage

If you work in a salon or beauty or hair business and believe you are not being paid the correct National Minimum Wage or National Living Wage, there are several routes to take. Start by raising the issue informally with your employer, review your payslips or use the government's minimum wage calculator to check what you're owed.

If the problem isn't resolved, can escalate this by filing a formal grievance or making a confidential complaint to HMRC, which can investigate and recover up to six years of arrears and issue penalties to the employer.

Employees also have the option to bring a claim to an employment tribunal instead of going through HMRC, though you cannot pursue both routes for the same issue.

For more information

Employers can find full, up‑to‑date guidance directly from HMRC on the GOV.UK website. HMRC publishes official information on National Minimum Wage, National Insurance, PAYE and employer obligations within its “Rates and thresholds for employers 2026 to 2027” guidance.

Support and advice for employees are available through ACAS, Citizens Advice and the UK government, with complaints to HMRC able to be made anonymously.

New minimum wage & national insurance rates from April

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