The UK government announces new minimum wage rates each year, typically taking effect in April. Failing to pay the correct rate is a criminal offence that can result in fines, public naming, and tribunal claims.
April 2025 Rates
- National Living Wage (21+) — £12.21 per hour
- 18-20 year olds — £10.00 per hour
- 16-17 year olds — £7.55 per hour
- Apprentice rate — £7.55 per hour
What Employers Must Do
- Review all pay rates — check that every employee is paid at or above the new rates from April
- Update payroll — adjust rates before the first pay run in April
- Check salary sacrifice schemes — ensure deductions don't take pay below the minimum
- Review accommodation offset — if you provide accommodation, the offset rate also changes
- Audit overtime and piecework — ensure the average hourly rate meets the minimum across all hours worked
Common Pitfalls
- Unpaid training time — if training is mandatory, those hours count as working time and must be paid
- Uniform costs — deductions or costs that bring pay below the minimum are unlawful
- Sleep-in shifts — workers on sleep-in shifts must be paid for hours they're required to be awake
- Tips — tips cannot count towards minimum wage (since October 2024)
Penalties for Non-Compliance
- Fines of up to 200% of the underpayment (capped at £20,000 per worker)
- Public naming by HMRC
- Criminal prosecution for wilful non-payment
Our compliance audit service includes payroll checks to ensure you're meeting minimum wage requirements. Get in touch.