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 2024)
- National Living Wage (21 and over) — £11.44 per hour
- 18-20 Year Old Rate — £8.60 per hour
- 16-17 Year Old Rate — £6.40 per hour
- Apprentice Rate — £6.40 per hour (for apprentices under 19, or 19+ in their first year)
From April 2024, the National Living Wage was extended to cover all workers aged 21 and over (previously 23 and over).
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 (£9.99 per day in 2024/25)
- 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 — £12.00 nationally and £13.15 in London. This is voluntary but increasingly adopted by employers wanting to demonstrate fair pay.
Enforcement
HMRC enforces minimum wage compliance. 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.