Most UK employees are entitled to be paid at least the National Minimum Wage (NMW). Every year, the UK government sets the new rates based on recommendations from the Low Pay Commission.
These rates are legally binding and must be followed by all employers.
The minimum wage is intended to ensure fair pay, reduce in-work poverty, and reflect the cost of living.
About National Minimum Wage
The minimum wage is reviewed annually and is a statutory right under the National Minimum Wage Act 1998. It applies to most workers in the UK.
To qualify, a worker must usually be aged 16 or over and meet one of the following criteria:
- Work full time or part time
- Work through an agency
- Do casual or irregular work
- Be an apprentice (some specific rules apply)
The rate increases with age. From April 2024, the National Living Wage applies to all workers aged 21 and over (this threshold was reduced from 23+ in 2024). The amount payable to workers aged 23 and over is known as the National Living Wage.
National Minimum Wage Increase 2025 & National Living Wage Rates
The minimum wage rates were increased in April 2025.
The rise in wages is based on factors including the economy and the cost of living. Every year the amount is recalculated and since April 2025 the minimum pay rate has been:-
| Age / Group | Rate per hour | Annual Increase | % Rise |
|---|---|---|---|
| 21 and over (NLW) | £12.21 | +£0.77 | +6.7 % |
| 18–20 | £10.00 | +£1.40 | +16.3 % |
| 16–17 | £7.55 | +£1.15 | +18.0 % |
| Apprentice (under 19 or 1st year) | £7.55 | +£1.15 | +18.0 % |
Youth Minimum Wage Increases – April 2025
In April 2025, younger workers saw historic increases to their minimum wage rates. The government boosted pay for workers aged 16–20 and apprentices by up to 18%, far outpacing general inflation.
This change reflects a long-term policy aim to narrow the gap between youth rates and the full National Living Wage, which now applies from age 21.
Low Pay Commission statement (2023):
“We recommended substantial increases to the youth rates in 2024 and 2025, in line with the government’s ambition to simplify the structure of the minimum wage and ensure younger workers benefit fairly from labour market gains.”
— Low Pay Commission 2023 Report (gov.uk)
From April 2025:
- The 18–20 rate rose to £10.00, narrowing the gap with the £12.21 NLW.
- The 16–17 and apprentice rates rose to £7.55 – an 18% increase.
This aligns with the UK government’s stated goal of setting the National Living Wage at two-thirds of median earnings by 2024–25, which it now meets.
Accommodation Offset – What It Means for Minimum Wage Rates
The accommodation offset is a daily amount that employers can legally deduct from wages if they provide living accommodation to a worker.
As of April 2025, the maximum offset is:
- £10.66 per day
- Equivalent to £74.62 per week
If an employer charges more than this, the excess counts as a reduction in pay, and may bring a worker’s effective hourly wage below the minimum wage threshold.
Who might be affected?
- Seasonal farm workers
- Live-in carers or au pairs
- Hospitality staff with tied accommodation
- Apprentices working in rural or residential settings
Sources:
GOV.UK – Accommodation and Minimum Wage
National Minimum Wage Regulations 2015
Employers must not use accommodation deductions to underpay staff. Even if the worker agrees, any excess above the offset amount cannot lawfully reduce pay below minimum wage.
Who is Entitled to National Minimum Wage?
Most workers in the UK are legally entitled to be paid at least the National Minimum Wage (NMW) — or the National Living Wage (NLW) if aged 21 or over.
To qualify, you must:-
- Be aged 16 or over
- Be classed as a worker (including full-time, part-time, agency, or casual)
- Not fall into one of the excluded groups (see next section)
This includes people who:-
- Work regular or zero-hours contracts
- Are paid hourly, salaried, by output, or on commission
- Work as agency staff or casual workers (called in when needed)
- Are apprentices (with special conditions)
Even if you don’t have a formal contract, you are still entitled to minimum wage if you meet the legal definition of a worker.
Apprentices are entitled to the apprentice minimum wage if they’re:-
- Aged under 19, or
- In the first year of their apprenticeship (regardless of age)
Once they complete the first year and are aged 19 or over, they must be paid the minimum wage for their age group.
Apprentices
Apprentices are entitled to receive the National Minimum Wage. However, there are different rules depending on their age and stage of training.
If you are an apprentice, you are entitled to the apprentice minimum wage rate if:
- You are aged under 19, or
- You are aged 19 or over and in the first year of your apprenticeship
Once you complete the first year and are 19 or over, your employer must pay you the minimum wage rate that applies to your age group.
Apprentices are also entitled to be paid for time spent at college or in training if it is part of the apprenticeship. This includes both on-the-job and off-the-job training time.
Source: GOV.UK – Pay and conditions for apprentices
See Also: Apprentice Minimum Wage Rates.
Young Workers
Young workers are those aged 16 or 17 who have finished compulsory school age but are not yet 18. These workers are entitled to the National Minimum Wage, but at a lower rate than adult workers.
Workers aged under 16 are not eligible for the minimum wage and are instead covered by child employment laws. They can only work a limited number of hours and are not usually required to be on an employer’s payroll.
Employees aged 16 or 17 must be paid at least the minimum wage rate for their age. They are also not required to pay National Insurance contributions unless their earnings exceed the weekly threshold.
More detailed information can be found in our guide to minimum wage for under-18s.
See Also: Under 18 Working Hours – for our in depth guide on the different rules on working hours for young workers.
National Minimum Wage Vs National Living Wage
The National Minimum Wage applies to most workers aged 16 and over. However, there is a higher rate known as the National Living Wage, which is paid to workers aged 21 and above.
The key difference is age eligibility and the higher hourly rate for older workers. The National Living Wage was introduced to give adult workers a better standard of living as they take on more responsibilities or face higher costs.
Employers must pay the correct rate depending on a worker’s age and employment status. These rates are set in law and reviewed each year.
Even small businesses must comply with these rules. It is a legal requirement, regardless of company size or sector.
The government’s long-term goal is for the National Living Wage to reach two-thirds of average earnings, which it now meets as of 2025.
See Also: What’s the difference between national minimum wage & living wage?
Calculating National Minimum Wage
To check if you’re being paid correctly, your average hourly pay is compared against the legal minimum for your age group.
Your employer must calculate:-
- The total pay you’ve received during your pay period (e.g. weekly or monthly)
- The total hours you’ve worked in that period
They then divide your total pay by the number of hours worked. If this amount falls below the legal minimum wage, your employer must make up the difference.
You can check whether you’re being paid correctly using the official National Minimum Wage calculator from GOV.UK.
Enforcing National Minimum Wage
The National Minimum Wage is a legal requirement under UK employment law. Employers who fail to pay it can face serious consequences.
When a business is found not to be paying the minimum wage, the government and HMRC will enforce it.
This will first, result in the employer being required to pay back what is owed to the employee. On top of this, they might be required to pay a fine for breaching the law. These can be hefty – potentially as much as £20,000 per underpaid employee.
What to Do if You are Being Underpaid
If you believe you are being paid less than the minimum wage, there are steps you can take to challenge it.
Start by raising the issue informally with your employer. They may not realise they’ve made an error, and in many cases, the issue can be resolved quickly.
If that doesn’t work, you can take formal action by:-
- Raising a grievance through your employer’s complaints process
- Reporting the underpayment to HMRC (you can do this anonymously)
- Making a claim to an employment tribunal
By law, your employer must keep wage records. If they cannot prove that they’ve paid the correct amount, the law usually favours the worker’s claim.
See Also: ACAS guide on what to do if an employer does not pay minimum wage.
FAQ
As long as the interns are classed as workers then they must be paid the national minimum wage. In situations such as work experience then the minimum wage does not apply.
The minimum wage can include commission. If there are times when you do not make enough commission to earn the minimum wage, then your employer needs to pay this difference.
Are employers allowed to deduct money out of our wages for even small mistakes made at work? I.e.) a mixed up for order? Our boss/manager threatens that any mistake, great or minor will be deducted from wages, and I have known this to happen to one ex employee. We are all on minimum wage, surely it can’t be legal to deduct whatever tiniest mistake occurs out of a minimum wage pay packet?
Hello, I have question about payment for a night shift.Im working 12 hours night shift(08:00-08:00) like a care assistant in health care and I have minimum 6.50 per hour.my question is if I should have a bigger wage then minimum and how much should be for a hour on night shift. Thank you Regards Marta
@marta3784 – There are no regulations that state night shift workers should be paid more than other workers.