Understand Minimum Wage Rates and Plan Payroll Confidently
Keeping track of minimum wage rates is essential to paying your employees correctly and managing staffing costs. We help you understand which National Minimum Wage or National Living Wage rate applies to your workers, taking account of their age and apprentice status where relevant.
From reviewing payroll information to planning for rate changes, our practical support helps you identify potential issues and maintain accurate pay records. Whether you are hiring your first employee or managing an established workforce, we provide clear guidance to help you meet your responsibilities and budget with confidence.
Current rates
| Age | National Living Wage (21+) | 18–20 | 16–17 | Apprentice |
|---|---|---|---|---|
| From 1 April 2026 | £12.71 | £10.85 | £8.00 | £8.00 |
| From 1 April 2025 | £12.21 | £10.00 | £7.55 | £7.55 |
What minimum wage rates are
- The legal minimum hourly pay most UK workers must receive.
- The rate depends on age, apprentice status and whether the National Minimum Wage or National Living Wage applies.
- Rates are reviewed annually and usually rise in April.
Who must pay
Almost all UK employers, including businesses, charities and individuals who employ staff. Covered workers include full-time, part-time, temporary, agency and zero-hours workers, and apprentices. Genuinely self-employed people, directors without employment contracts and volunteers are generally not entitled.
Paying the minimum wage correctly
- Check the rate for each worker’s age and apprentice status.
- Record hours, including overtime and paid training.
- Calculate the average hourly rate to confirm it meets the minimum.
- Update each April and when a worker changes age band.
- Keep records for at least three years.
- Check deductions for uniforms or tools, which can take pay below the minimum.
Frequently Asked Questions
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How Often do Minimum Wage Rates Change?
Minimum wage rates are reviewed every year and usually increase each April, so the figures can change from one tax year to the next. Employers need to update their payroll from the date the new rates take effect to make sure all staff are paid correctly. It is a good idea to check the latest government figures every spring and plan ahead for the extra cost.
Can Tips Count Towards the Minimum Wage?
No, tips, service charges and gratuities cannot be used to top up a worker’s pay to reach the minimum wage. Employers must pay the full minimum hourly rate from their own funds, and any tips received by staff are treated as a separate extra. This rule applies in all sectors, including hospitality, so it is important to keep tips and wages clearly separate in your payroll records.
Do Zero-Hours Workers Get the Minimum Wage?
Yes, zero-hours workers are entitled to at least the National Minimum Wage or National Living Wage for every hour they work. Their rate depends on their age and apprentice status, in the same way as any other employee. Employers should keep accurate records of hours worked, so that pay can be calculated correctly even when hours change from week to week.
What are the Current Minimum Wage Rates?
From 1 April 2026, the National Living Wage for workers aged 21 and over is £12.71 per hour. The rate for workers aged 18 to 20 is £10.85, while workers aged 16 to 17 and apprentices are entitled to a minimum of £8.00 per hour. These rates replaced the 2025 figures, so employers should check that all staff are now being paid at the correct level.
Who Must Pay the Minimum Wage?
Almost all UK employers must pay the minimum wage, including businesses, charities and individuals who employ staff. Covered workers include full-time, part-time, temporary, agency and zero-hours workers, as well as apprentices. Genuinely self-employed people, directors without employment contracts and volunteers are generally not entitled, although their status should be checked carefully.
Do Apprentices Get the Minimum Wage?
Yes, apprentices are entitled to the apprentice rate, which is £8.00 per hour from 1 April 2026. This rate usually applies to apprentices aged under 19, or those aged 19 and over who are in the first year of their apprenticeship. Apprentices outside this group are generally entitled to the minimum wage rate for their age, so employers should check each case.
How can I Make Sure I am Paying the Minimum Wage Correctly?
Start by checking the correct rate for each worker’s age and apprentice status, then record all hours worked, including overtime and paid training time. You should calculate the average hourly rate over the pay reference period to confirm that it meets the minimum. Keep your pay records for at least three years, and update rates each April or whenever a worker moves into a new age band.
Can Deductions for Uniforms or Tools Take Pay Below the Minimum Wage?
No, deductions for items such as uniforms or tools cannot reduce a worker’s pay below the minimum wage rate that applies to them. If these deductions would take their hourly pay under the legal minimum, the employer would be underpaying, even if the worker agreed to the deduction. Employers should check their payroll carefully to ensure that every deduction still leaves the worker with the correct minimum pay.