| Age group | Hourly rate | Change from April 2024 |
|---|---|---|
| 21 and over (National Living Wage) | £12.71 | +6.7% |
| 18 to 20 | £10.85 | +16.3% |
| Under 18 | £8.00 | +18.0% |
| Apprentice rate | £8.00 | +18.0% |
Rates apply from 1 April 2025. The apprentice rate applies to apprentices aged under 19, or aged 19 and over who are in the first year of their apprenticeship.
Frequently asked questions
The National Living Wage (NLW) is the higher rate applying to workers aged 21 and over. The National Minimum Wage (NMW) covers younger workers with lower rates for ages 18 to 20, 16 to 17, and apprentices. From April 2025 the NLW is £12.71 per hour and the rate for 18 to 20 year olds is £10.85 per hour.
Qualifying pay includes basic salary, performance bonuses, and tips paid through the payroll. It does not include overtime premiums, shift allowances, tips paid directly by customers, benefits in kind, or any deductions for accommodation (beyond the accommodation offset), uniform costs, or tools. HMRC calculates the hourly rate by dividing qualifying pay by hours worked.
HMRC enforcement can result in a notice to pay arrears, a penalty of up to 200% of underpaid wages (minimum £100, maximum £20,000 per worker), and public naming on HMRC's minimum wage enforcement list. Directors can be personally liable. There is no time limit on when a worker can make a claim for underpayment.
Yes. Salary sacrifice arrangements reduce a worker's contractual pay. If the reduced pay falls below the minimum wage for their age group, the arrangement is not compliant. You must ensure that after any salary sacrifice deduction the worker still receives at least the minimum wage for every hour worked.
Apprentices have a separate minimum rate of £8.00 per hour from April 2025, which applies to all apprentices under 19 and those aged 19 or over who are in the first year of their apprenticeship. Once an apprentice is aged 19 or over and has completed their first year, they are entitled to the minimum wage rate for their age group.