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Minimum Wage Rates

What You Need to Know About Minimum Wages

Minimum wage rates set out the lowest amount workers in the UK must be paid per hour, depending on their age and employment status. The National Minimum Wage and National Living Wage help ensure employees are paid fairly for their work.

This guide explains how minimum wage rates work, who they apply to, and what employers and workers need to know to stay compliant and avoid penalties.

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What Are Minimum Wage Rates?

Minimum wage rates are the legal minimum hourly pay employers must give most workers in the UK. The rates vary depending on your age, whether you’re an apprentice, and whether you qualify for the National Minimum Wage or the National Living Wage.

The National Minimum Wage applies to most workers under 23, while the National Living Wage is a higher rate for workers aged 23 and over. These rates are reviewed every year and usually increase in April.

Understanding what minimum wage rates apply helps employers pay staff fairly and helps workers check they’re getting what they’re entitled to by law.

Getting Started with Minimum Wage Rates

Before you hire staff or check your own pay  it’s important to understand which minimum wage rate applies. The rate you must pay depends on the worker’s age, whether they’re an apprentice, and their employment status.

Employers must check the current rates every year and keep accurate records to prove they’re paying the correct minimum wage. Workers should also know their rights and what to do if they think they’re being underpaid.

Knowing how minimum wage rates work helps businesses stay compliant and gives employees confidence they’re getting fair pay for their work.

National Minimum Wage rates apply to employees up to the age of 20.

National Living Wage (NLW) rates apply to employees 21 and over.

The Apprentice rate applies to apprentices under 19, or 19 and over in the first year of apprenticeship.

Penalties apply to employers who fail to pay minimum wages.

AgeNLW18-2016-17Apprentice
From 1 April 2025£12.21£10.00£7.55£7.55
From 1 April 2024£11.44£8.60£6.40£6.40
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Who Must Pay Minimum Wage Rates?

Almost all employers in the UK must pay minimum wage to their workers. This includes businesses, charities, and individuals who employ someone to work for them for example, a cleaner or carer.

The National Minimum Wage and National Living Wage apply to:

  • Employees and workers over school leaving age
  • Part-time and full-time workers
  • Temporary and agency workers
  • Apprentices (with a special apprentice rate if they’re under 19 or in their first year)

Certain groups are not entitled to minimum wage rates such as genuinely self-employed people, company directors (who don’t have an employment contract), volunteers, and some family members working in a family business.

Employers must check the correct rate for each worker’s age and role and make sure they update pay when rates change each year.

How to Pay Minimum Wage Rates

Paying minimum wage means making sure every eligible worker gets at least the legal hourly rate for every hour they work. Employers must check each worker’s age, apprenticeship status, and working hours to work out what they’re owed.

Steps to Pay Minimum Wage Correctly:

  1. Check the Right Rate: Find out which National Minimum Wage or National Living Wage rate applies to each worker based on their age and role.
  2. Calculate Hours Worked: Keep accurate records of working hours including overtime, waiting time, or time spent training if this counts as paid work.
  3. Do the Math: Divide total pay by total hours to make sure the average hourly rate meets or exceeds the legal minimum.
  4. Update When Needed: Review wages every April when rates usually rise, and adjust pay when workers move into a new age band or finish an apprenticeship year.
  5. Keep Records: Employers must keep pay and working hours records for at least three years to prove they’re paying the correct minimum wage.

Failing to pay the right minimum wage rates can lead to penalties, back payments, and being named publicly by HMRC so getting it right is essential.

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Minimum Wage Rates FAQs

Minimum wage rates are the legal minimum hourly pay employers must give workers. The National Minimum Wage applies to most workers under 23, and the National Living Wage applies to workers aged 23 and over.

Most workers over school leaving age qualify, including part-time, full-time, agency workers, and apprentices. Genuine self-employed people, volunteers, and some family members may be exempt.

UK minimum wage rates usually change every April. Employers must check the latest rates each year to stay compliant.

Apprentices under 19 or in their first year get a special apprentice rate. After their first year, if they’re over 19, they must be paid the minimum wage for their age.

Divide your total pay by the total hours you’ve worked to find your average hourly rate. If it’s below the legal minimum, speak to your employer or report it to HMRC.

HMRC can make employers pay back any underpayments and issue fines. Employers can also be publicly named and shamed.

Yes anyone classed as a worker must get at least the minimum wage for every hour they work, including zero-hours and casual workers.

No tips, service charges, or gratuities can’t be used to top up pay to meet the minimum wage. The hourly rate before tips must meet or exceed the legal rate.

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