National Minimum Wage and National Living Wage Rates

Most workers in the UK are legally entitled to receive at least the National Minimum Wage or National Living Wage. The amount depends mainly on the worker's age and whether they are an apprentice.

The statutory rates usually increase on 1 April each year. Employers must make sure that workers receive the correct rate for every relevant pay period and must increase their pay when they move into a higher age band.

Minimum Wage Rates From 1 April 2026

The statutory hourly rates are:

■ Workers aged 21 and over: £12.71
■ Workers aged 18 to 20: £10.85
■ Workers aged under 18: £8.00
■ Qualifying apprentices: £8.00

The rate for workers aged 21 and over is officially known as the National Living Wage. The lower age-related rates and apprentice rate are known as the National Minimum Wage.

Who Is Entitled to the Minimum Wage?

Most people working legally in the UK are entitled to the minimum wage, including:

■ Full-time and part-time employees
■ Casual workers
■ Agency workers
■ Workers on zero-hours contracts
■ Apprentices who qualify for an apprentice or age-related rate
■ Agricultural workers
■ Foreign workers legally working in the UK
■ Workers paid by commission or according to the amount of work completed

A person does not necessarily have to be described as an employee to qualify. The legal definition of a worker is wider, and employment status will depend on the reality of the working arrangement rather than the wording used in a contract.

The Minimum Wage for Apprentices

The apprentice rate applies where an apprentice is:

■ Under the age of 19; or
■ Aged 19 or over and in the first year of their apprenticeship.

An apprentice aged 19 or over who has completed the first year of their apprenticeship must receive at least the minimum wage applicable to their age.

For example, a 22-year-old apprentice in the first year of an apprenticeship can be paid the apprentice rate of £8 per hour. Once the first year has been completed, that apprentice must normally receive the rate for workers aged 21 and over.

When Does a Higher Rate Apply?

A worker becomes entitled to a higher minimum wage rate from the first pay-reference period beginning after their birthday.

For example, someone turning 21 does not necessarily receive the higher rate on the exact date of their birthday. The new rate applies from the beginning of the next relevant pay period.

Who Is Not Usually Entitled?

Some people are not entitled to the National Minimum Wage, including:

■ genuinely self-employed People
■ Company directors who do not have a worker's contract
■ Volunteers and voluntary workers in qualifying circumstances
■ Members of the armed forces
■ People living and working as part of a family in the employer's home
■ Students carrying out certain work placements as part of a higher-education course
■ People below compulsory school-leaving age

Calling someone self-employed does not automatically remove their minimum wage rights. A tribunal may decide that the person is legally a worker where the practical working relationship does not reflect genuine self-employment.

Deductions From Pay

An employer cannot normally avoid the minimum wage by making deductions or requiring a worker to pay work-related expenses.

Deductions for items such as uniforms, tools, equipment or mandatory training may reduce the worker's pay for minimum wage purposes. This can result in an underpayment even where the worker's stated hourly rate appears to be above the legal minimum.

Tips, gratuities and service charges do not count towards an employer's obligation to pay the minimum wage.

Employer-Provided Accommodation

Accommodation is the only benefit in kind that can normally count towards minimum wage pay.

From 1 April 2026, the accommodation offset is £11.10 per day or £77.70 per week. Where an employer charges more than the permitted offset, the excess can reduce the pay counted towards the minimum wage.

Other benefits, such as meals, childcare, transport or use of a company vehicle, do not normally count as minimum wage pay.

Working Time and Unpaid Hours

The minimum wage calculation must include all working time covered by the legislation. Depending on the circumstances, this can include:

■ Time spent carrying out duties before or after a scheduled shift
■ Mandatory training
■ Time spent travelling between work assignments
■ Time when a worker is required to remain at or near the workplace
■ Certain periods when a worker is required to be available for work

Ordinary travel between home and a permanent workplace does not usually count as working time for minimum wage purposes.

Employers should be particularly careful where workers are salaried, paid by output, required to perform unpaid preparation or regularly work longer hours than stated in their contracts.

Salaried Workers

A worker receiving an annual salary can still be underpaid if the salary, when divided by the hours worked during the relevant period, falls below the applicable minimum wage.

Additional unpaid hours, early starts, late finishes and mandatory duties carried out outside normal working hours can all affect the calculation.

Record-Keeping Responsibilities

Employers must keep records sufficient to demonstrate that workers have received at least the correct minimum wage.

Workers should retain copies of payslips, contracts, rotas, timesheets and records of hours worked. These documents can be important where there is a disagreement about pay or working time.

What Can a Worker Do If They Are Underpaid?

A worker who believes they have been underpaid can raise the issue directly with the employer and ask for an explanation of how their pay has been calculated.

They may also make a confidential complaint to the government's minimum wage enforcement service or seek advice from Acas. HMRC or the relevant enforcement authority can investigate the employer, require repayment of arrears and impose financial penalties.

A worker may also be able to bring a claim through an employment tribunal or the civil courts. Different procedures and time limits apply, so advice should be obtained promptly.

Penalties for Employers

An employer that fails to pay the correct minimum wage can be required to repay arrears calculated using the applicable rules.

A financial penalty of up to 200% of the underpayment may also be imposed, subject to a maximum of £20,000 for each underpaid worker. Employers that break the law may be publicly named, and deliberate offending can lead to criminal prosecution.

Employers cannot avoid liability simply because the underpayment was accidental or resulted from an incorrect payroll calculation.

Protection From Dismissal or Detriment

Workers are protected against dismissal or other detrimental treatment for asserting their right to the minimum wage.

An employer should not reduce a worker's hours, withhold work, discipline them or dismiss them because they asked to receive the correct legal rate or complained about an underpayment.

National Living Wage and the Voluntary Living Wage

The statutory National Living Wage should not be confused with the voluntary "Real Living Wage" promoted by the Living Wage Foundation.

The National Living Wage is a compulsory government rate for workers aged 21 and over. The Real Living Wage is a higher voluntary rate that some employers choose to pay and is calculated independently by reference to living costs.

Obtaining Legal Advice

Minimum wage calculations can become complicated where a worker receives accommodation, works irregular hours, is paid by output, incurs employment expenses or has been wrongly described as self-employed.

Workers and employers should seek advice from an employment law solicitor where there is uncertainty about entitlement, deductions, working time, arrears or potential tribunal proceedings.

Important Information

Solicitors.com is not a firm of solicitors. This article is provided for general information only and does not constitute legal advice. Minimum wage rates and employment laws may change, and their application will depend on the individual circumstances. You should seek advice from a suitably qualified solicitor before taking or refraining from legal action.