08 May 2026
From 1 April 2026, the national living wage for workers aged 21+ is £12.71 per hour; no employer can legally pay less.
national minimum wage rates and national living wage rates change every April 1st each year, based on age and apprentice status.
Tips, gratuities, service charges, meals and most benefits in kind do not count, except the accommodation offset.
Most workers are legally entitled to minimum wage protection, including employees, agency workers and eligible apprentices.
You can report underpayment to HMRC online, and the ACAS helpline can confirm minimum wage entitlement.
The minimum wage is the lowest legal amount an employer can pay workers. In the UK, the national minimum wage and national living wage set the minimum hourly rate for most people in work and serve as an economic baseline to ensure fair pay.
The National Minimum Wage is the statutory minimum hourly rate for workers below the National Living Wage age band, depending on age and apprenticeship status. The National Living Wage is the highest statutory minimum wage band for workers aged 21 and over from 1 April 2024 onward. Employers may pay a higher rate, but never less, even if a contract says otherwise.
Do not confuse the government rate with the voluntary living wage set by the living wage foundation, which reflects the cost of living.
The government sets wage rates each April. Current rates from GOV.UK are:
| Worker category | minimum wage rate |
|---|---|
| 21 and over | £12.71 per hour |
| 18–20 | £10.85 per hour |
| 16–17 | £8.00 per hour |
| apprentice rate | £8.00 per hour |
The National Living Wage is £12.71 for those over 21. The minimum wage for those aged 23 and over was £12.71 because they fall within the 21+ band in 2026. The National Living Wage was introduced in April 2016 for 25+, moved to 23+ in 2021, then 21+ in 2024.
Rates change with each pay reference period: hours worked on or after 1 April must use the new rate.
There is a specific apprentice rate within the national minimum wage nmw system. It applies to apprentices under 19, or apprentices 19+ in the first year of their apprenticeship.
For example, a 21-year-old apprentice in their first year gets £8.00 per hour in 2026, then £12.71 after the first year. Apprentices are entitled to the minimum wage for their age once they no longer qualify for the apprentice rate. Some older guidance said apprentices under 19 earn a minimum of £7.55 per hour; that is not the current 2026 rate.
Higher Level Apprenticeships are not exempt.
Most workers are eligible for the national minimum wage. You must be at least 16 years old to qualify. Employees, workers, agency workers, casual staff, seasonal staff and some interns qualify.
You are not entitled if you are under 16 or a volunteer. Other exclusions include genuinely self-employed people running a business for clients, armed forces, prisoners, some trainees and voluntary workers with no obligation to work. If unsure, use the GOV.UK calculator or the Acas helpline.
Work experience may qualify if there are set hours, duties and an obligation to attend. Shadowing only, with no real job duties, may not.
Agricultural workers must never be paid below the NMW or NLW for their age. In specialist sectors, check sector rules too; some agricultural minimum hourly rules include overtime after 39 hours at time and a half.
Check your hourly rate, payslip, hours and wages regularly. Calculating compliance means dividing qualifying pay by total hours in the pay reference period, then comparing the average with the correct minimum hourly rate.
Count working time such as compulsory training, required on-call time and travel between work sites. If you longer work unpaid hours, your average can fall below the minimum.
NMW pay is gross pay before tax and National Insurance in the relevant period. Basic pay, piecework, commissions and some work-related payments count.
Most benefits do not count: meals, staff discounts, company cars, insurance and expenses are excluded. Tips, gratuities and service charges also do not count toward the minimum amount.
Deductions for items mainly benefiting the employer, such as required uniforms, can reduce NMW pay. The accommodation offset is the main exception for benefits in kind: from April 2025 it is £74.62 weekly or £10.66 daily unless changed.
Example: if accommodation costs exceed the offset, the extra rent reduces cash pay for NMW purposes and can create arrears owed.
The statutory National Living Wage is set by the government. The real living wage is voluntary and calculated by the Living Wage Foundation from household costs such as rent, energy and food.
For 2025/26, the voluntary rates are £13.45 outside London and £14.80 in London. Employers choose whether to pay these rates, but the legal floor remains NMW/NLW. Higher pay floors attract more qualified candidates, reduce employee turnover, and improve employee morale and productivity.
Previous rates matter for back pay and audits. The NLW was 25+ before 1 April 2021, 23+ from 2021 to 2024, and 21+ from 2024.
Historical tables on GOV.UK show previous rates for each age band and apprentice category. HR and payroll teams should keep them for tribunal claims, payroll checks and reconciliation.
Before 1 April 2021: NLW applied at 25+.
1 April 2021–31 March 2024: NLW applied at 23+.
1 April 2024–31 March 2026: NLW applied at 21+.
Statutory minimums often lag behind price increases during high inflation, which is why historic checks must use the exact date and rate in force.
New tipping rules require employers to pass on qualifying tips, gratuities and service charges fairly and in full. Qualifying tips are sums controlled by the employer, whether cash, card or added to the bill.
They cannot offset NMW or NLW. Workers must receive minimum wage in money before tips.
An employer controls tips if it decides how, when or to whom tips are paid. Distribution can be through payroll, direct payment or an independent troncmaster, but records must be kept for three years. Workers can request tip information affecting them.
Underpayment happens. First check payslips, rotas and your contract, then raise it informally. You can raise a grievance if underpaid.
Employers must provide pay records within 14 days of request; make a written request and keep copies. If underpaid, you are owed the difference.
The Acas helpline, 0300 123 1100, can confirm entitlement and explain early conciliation. You can report underpayment to HM Revenue and Customs online. If HMRC finds a breach, it can order back pay and penalties.
You have 3 months to file a tribunal claim after underpayment, usually three months less one day, so act quickly.
Use Acas, Citizens Advice, trade unions and official GOV.UK pages for further information and support. Employers should also seek guidance to avoid penalties, especially with accommodation, deductions and tronc systems.
Minimum wages vary significantly across countries. The statutory minimum wage varies widely worldwide, and some countries have no legal minimum wage at all. The International Labour Organization sets standards for minimum wages worldwide.
More than 30 US states mandate higher minimum wage rates than the federal baseline. Minimum wage structures and amounts depend on local cost of living, region and economy type. In developing nations, the impact of minimum wage on living standards is often limited.
Minimum wages serve as a vital policy tool to combat in-work poverty. Higher minimum wages directly reduce wage inequality at the bottom end of the income distribution, increase purchasing power for low-income households, and can help families afford basic necessities. A 10% raise in minimum wage increases overall living standard satisfaction, and higher minimum wages have a measurable positive impact on worker health. But the actual impact of minimum wages on living standards depends on local cost of living, and higher operational costs can strain profit margins in labor-intensive industries.
Travel between work locations usually counts, such as care workers visiting clients or engineers moving between sites. Normal commuting usually does not. Unpaid travel can reduce the effective hourly rate.
Yes, but limitation periods matter. HMRC may recover arrears across the investigated period, while employment tribunal time limits are short. Gather payslips, schedules and contracts quickly.
The accommodation offset lets an employer count up to £74.62 a week or £10.66 a day. Rent above that can reduce NMW pay and cause underpayment.
It depends on legal status. Some platform workers are “workers” and entitled; genuinely self-employed people may not be. Status disputes can need specialist advice.
No. Free meals, discounts and perks do not count. Aside from accommodation, workers must receive the legal minimum in cash wages.
