The National Living Wage (NLW) and National Minimum Wage (NMW) set the legal minimum hourly rates that employers must pay workers in the UK. The NLW applies to workers aged 21 and over, while the NMW applies to younger workers and apprentices. These rates are reviewed annually, typically increasing each April.
Current rates
The rates for April 2025 onwards are:
21 and over (National Living Wage): £12.21 per hour
18-20: £10.00 per hour
Under 18: £7.55 per hour
Apprentice rate: £7.55 per hour (for apprentices under 19, or 19+ in their first year)
These rates are set by the government based on recommendations from the Low Pay Commission, an independent body that balances the needs of workers and businesses. The government has stated an ambition for the NLW to reach two-thirds of median earnings.
Who is entitled
Almost all workers are entitled to at least the minimum wage, including part-time workers, agency workers, zero-hours contract workers, casual labourers, and home workers. Some exceptions exist: genuinely self-employed people (not workers misclassified as self-employed), volunteers, company directors, family members living in the employer's home, and members of the armed forces.
Importantly, your immigration status doesn't affect your minimum wage rights. All workers in the UK are entitled to the minimum wage regardless of their visa or residency status.
What counts as working time
This is where many employers — sometimes inadvertently — fall foul of the rules. Working time includes time spent at work and required to be available (even if not actively busy), compulsory training, time spent travelling between assignments during a shift, and time spent opening or closing premises if required.
Working time generally doesn't include travelling to and from your normal workplace, lunch breaks where you're free to leave the premises, or time spent on-call at home (unless you're called in).
If your employer requires you to arrive 15 minutes before your shift to change into uniform or set up, that's working time. If they deduct 30 minutes for lunch but you're required to stay on the premises and remain available, that may also count as working time. These seemingly small things can push effective hourly pay below the minimum wage.
Common ways employers underpay
HMRC's minimum wage enforcement team identifies several recurring patterns:
Unpaid working time — requiring workers to be present before or after their paid shift.
Deductions from wages — deducting money for uniforms, tools, or other items that bring hourly pay below the minimum. (Deductions are allowed but cannot reduce pay below NMW.)
Salary workers on long hours — a salaried worker on £25,000 per year who regularly works 50 hours per week may actually be earning below minimum wage on an hourly basis.
Accommodation offset — employers can offset the cost of accommodation against wages, but only up to a capped amount (£10.66 per day in 2025/26). Charging more effectively reduces pay below the minimum.
How to check your pay
Divide your gross pay for the pay period by the total hours you worked (including all working time as defined above). If the result is below the relevant minimum wage rate for your age, your employer may be underpaying you. Keep accurate records of your hours worked — especially any unpaid time before or after shifts.
What to do if you're underpaid
Raise it with your employer first — genuine mistakes happen, particularly with complex shift patterns or salary calculations. If that doesn't resolve it, contact ACAS for advice. You can also make a complaint to HMRC, which investigates minimum wage breaches and can issue enforcement notices requiring employers to pay arrears plus a penalty.
Employers found to have underpaid face a penalty of up to 200% of the arrears owed (up to a maximum of £20,000 per worker) and may be publicly named and shamed by HMRC. Workers have the right not to be victimised for asserting their minimum wage rights — if your employer treats you badly for raising the issue, that's a separate legal wrong.
Tips, service charges and the minimum wage
Tips do not count towards minimum wage pay. Your employer must pay you at least the minimum wage from their own pocket, before tips. Since October 2024, new legislation requires employers to pass on all tips to workers in full. Service charges are treated similarly. If your employer has been counting tips as part of your minimum wage pay, that's unlawful.