The complete employer guide to the National Minimum Wage in the UK
On April 1st every year, the National Minimum Wage and National Living Wage rates in the UK change to reflect current economic conditions. The Low Pay Commission estimated that, as of 2024, 6.5% of UK workers were paid at or under the minimum wage. A third of those job roles are thought to be in the retail and hospitality sectors.
It's important to know the current National Minimum and Living Wage whether you’re an employer or an employee—whether that’s to ensure compliance and fairness or know that you are getting the pay you’re entitled to. Employers in the UK are obligated to pay the National Minimum Wage and National Living Wage to their employees, though the exact amount may vary on certain factors like age.
Continue reading to learn more about the National Minimum Wage, the National Living Wage, and how understanding the difference can help you build a company culture that thrives.
What are the National Minimum Wage and National Living Wage?
The National Living Wage (NLW) is the minimum hourly pay workers aged 21 and over are entitled to.
You can think of the National Living Wage as the highest tier of the National Minimum Wage (NMW). The NMW applies to workers under 21, as well as apprentices. The NLW and NMW are both designed to offer a degree of financial security for all employees, and to ensure that work is consistently and fairly remunerated by law.
UK minimum wage 2025 rates
The National Minimum Wage is a lower rate of pay, which applies to a different category of workers—usually those aged 20 and younger. In some instances, apprentices may also be on a form of National Minimum Wage. This pay is separated into several tiers based on age.
*Current as of April 1, 2025.
UK National Living Wage rates 2025
As of April 2025, the National Living Wage is set at £12.21 and will likely rise again on April 1st, 2026, as it has year-on-year. The National Living Wage hourly pay rate must be paid to workers age 21 or over.
Who is entitled to minimum wage?
Anyone classed as a worker and of at least school leaving age is entitled to the National Minimum Wage. Workers must be over 21 years of age to qualify for the National Living Wage.
Workers who may also be entitled to the National Minimum Wage include:
- Part-time workers
- Disabled workers
- Apprentices
- Offshore workers
- Non-family members such as au pairs.
Contracts below the minimum wage are not legally binding. If you are not receiving the National Minimum Wage when you’re entitled to, contact the Acas helpline.
Who isn’t entitled to minimum wage?
Some workers are not entitled to the minimum wage in the UK, such as:
- People who are self-employed
- Company directors
- Voluntary workers
- Armed forces members
- Workers below school leaving age
- Prisoners
- Workers on pre-apprenticeship schemes.
Are apprentices paid minimum wage?
Yes, apprentices are paid a form of minimum wage based on their age, and the status of their apprenticeship, starting on a dedicated apprenticeship wage.
Apprentices aged under 19 (or over 19 but in the first year of their apprenticeship) earn £7.55 as of April 1st, 2025 (noted on the table shown earlier). If they are 19 years or older and have successfully finished the first year of their apprenticeship, they are entitled to the National Minimum Wage as per their age.
You can learn more about rates for apprentices here.
Employers and minimum wage
Employers have a responsibility to pay workers the correct minimum or living wage. This means they must understand and adhere to any guidance on minimum wage rates and when they apply. Additionally, employers need to pay workers the correct total amount and calculate the correct National Insurance, Income Tax, and any other deductions.
Calculating minimum wage
To calculate the minimum wage for an employee correctly, you need to consider the following:
- Wage advances/loans
- Income Tax and National Insurance contributions
- Repayment of overpaid wages, wage advances and loans
- Accommodation provided by the employer above the offset rate of £10.66 per day
- Charges for worker misconduct
- Items the work has paid for that are not needed for the job or paid voluntarily, such as meals.
This means, for example, that deductions need to be considered in the total pay. If you’re worried about calculating minimum wage correctly or want further support, take a look at the .gov.uk guidance on calculating the minimum wage to meet legislation.
Do employers need to keep records of payments they have made?
Yes, employers need to keep employee National Minimum Wage and auto-enrolment records for at least six years. This is not to be confused with PAYE or wage records, which are generally kept for three years.
These records also need to be stored in a way that the information is accessible in a single document.
You can learn more about recording evidence for the National Minimum Wage with examples here.
What should an employer do if they’ve paid less than the minimum wage?
If an employer hasn’t paid the correct amount of minimum wage, they should immediately rectify and pay any arrears. That means an employee doesn’t need to wait until their next payslip to get back any owed payments. This includes payments that may be owed from previous years.
You can find more details about employer checks and the minimum wage on this page.
Is there a National Minimum Wage calculator?
Yes, there is a National Minimum Wage and Living Wage calculator available for employers to help you check that you’re paying the right amount of minimum wage to your employees. It can also help you determine if you owe your employee any monies due to underpayment in previous years.
You can find the National Minimum Wage calculator here.