The UK has legally binding minimum wage rates that employers must pay. These rates are reviewed annually and typically change on 1 April each year.
Current Rates (April 2026)
- National Living Wage (21 and over) — £12.71 per hour
- 18-20 Year Old Rate — £10.85 per hour
- 16-17 Year Old Rate — £8.00 per hour
- Apprentice Rate — £8.00 per hour (for apprentices under 19, or 19+ in their first year)
The National Living Wage covers all workers aged 21 and over, and the government has asked the Low Pay Commission to keep narrowing the gap between the 18-20 rate and the full adult rate.
Key Points for Employers
- These are minimum rates — employers can and should pay more where possible
- The rates apply to all workers, including part-time, temporary, and agency workers
- Employers must not make deductions that reduce pay below the minimum wage
- Accommodation can be offset up to the accommodation offset rate (£11.10 per day in 2026/27)
- Tips and service charges do not count towards minimum wage
Real Living Wage
The Real Living Wage (set by the Living Wage Foundation, not the government) is higher than the statutory minimum, with a separate London rate. This is voluntary but increasingly adopted by employers wanting to demonstrate fair pay — check livingwage.org.uk for the current rates.
Enforcement
Minimum wage compliance is enforced by the Fair Work Agency, the single labour market enforcement body established in April 2026. Penalties for non-payment include 200% of arrears owed (up to a maximum of £20,000 per worker) and public naming and shaming.
Our payroll administration service ensures your pay rates are always compliant. Get in touch.