National Minimum Wage 2025/26
From April 2025, the National Living Wage for workers aged 21+ is £12.21 per hour. The rate for 18-20 year olds is £10.00, under 18s £7.55, and apprentices £7.55 per hour.
Last updated: February 2025
£12.21/hr
NLW (21+)
£10.00/hr
18-20 rate
£7.55/hr
Apprentice rate
What the Law Says
The National Minimum Wage Act 1998 requires all employers to pay at least the statutory minimum wage. Rates are reviewed annually by the Low Pay Commission and updated each April. Failure to pay the minimum wage is a criminal offence carrying fines of up to 200% of arrears owed.
Your Obligations as an Employer
- Pay at least the applicable NMW/NLW rate for every hour worked
- Keep adequate pay records for at least 6 years
- Display no notices discouraging workers from claiming their rights
- Ensure salary sacrifice schemes do not reduce pay below NMW
What to Include in Contracts
Contracts should state the hourly rate or equivalent, confirm it meets or exceeds NMW/NLW, and include a clause confirming automatic adjustment when statutory rates change.
View related contract templateCommon Mistakes
- Failing to account for travel time as working time
- Deducting uniform costs that take pay below NMW
- Misclassifying workers as volunteers or self-employed
FAQ
Does the National Living Wage apply to all workers?
The NLW applies to workers aged 21 and over. Younger workers and apprentices are entitled to lower NMW rates. All workers, including agency and zero-hours contract workers, are covered.
Can tips count towards minimum wage?
No. Under the Employment (Allocation of Tips) Act 2023, tips must be passed to workers in full and cannot be used to top up wages to meet NMW requirements.
Stay compliant with UK employment law
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Get Started FreeThis is guidance for UK employers, not legal advice. For complex employment law matters, consult a qualified employment solicitor or ACAS.
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