National Minimum Wage Rates April 2024 - March 2025
The National Minimum Wage (NMW) and National Living Wage (NLW) rates were updated on 1 April 2024. These represent the largest cash increase in minimum wage history, with the NLW rising by 9.8% to help workers keep pace with inflation.
Age Group
Hourly Rate
Weekly (37.5hrs)
Monthly
Annual
21 and overNLW
£11.44
£429.00
£1,859.00
£22,308
18-20 yearsNMW
£8.60
£322.50
£1,397.50
£16,770
Under 18NMW
£6.40
£240.00
£1,040.00
£12,480
ApprenticeNMW
£6.40
£240.00
£1,040.00
£12,480
Key Change for 2025/26
The National Living Wage age threshold has been lowered from 23 to 21. This means workers aged 21-22 now receive the higher NLW rate of £11.44/hour instead of the previous 21-22 rate. This change benefits approximately 143,000 workers aged 21-22.
Understanding the Difference: NMW vs NLW
National Living Wage (NLW)
£11.44/hr
For workers aged 21 and over
Higher rate introduced in 2016
Applies from age 21 (from April 2024)
Target: 66% of median earnings by 2024
Reviewed by Low Pay Commission
National Minimum Wage (NMW)
£6.40 - £8.60/hr
For younger workers & apprentices
Introduced in 1999
Different rates by age band
Apprentice rate for year 1 or under 19
Legally enforceable minimum
HMRC Compliant
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Historical Minimum Wage Rates
Understanding how minimum wage rates have increased over time helps workers and employers plan for future changes and understand the trajectory of wage growth in the UK.
Year
NLW (21+)
18-20
Under 18
Apprentice
April 2024
£11.44
£8.60
£6.40
£6.40
April 2023
£10.42*
£7.49
£5.28
£5.28
April 2022
£9.50*
£6.83
£4.81
£4.81
April 2021
£8.91*
£6.56
£4.62
£4.30
April 2020
£8.72*
£6.45
£4.55
£4.15
* NLW applied to workers 23+ until April 2024 when threshold lowered to 21+
Key Milestones in UK Minimum Wage History
April 1999
NMW Introduced
National Minimum Wage launched at £3.60/hour for adults
April 2016
NLW Created
National Living Wage introduced at £7.20/hour for workers 25+
April 2021
NLW Age Lowered
NLW threshold reduced from 25 to 23 years old
April 2024
Largest Increase
NLW rises 9.8% to £11.44; age threshold lowered to 21
Employer Compliance: NMW/NLW Requirements
All UK employers must comply with minimum wage legislation. Non-compliance can result in significant penalties, including fines of up to 200% of arrears owed (maximum £20,000 per worker) and public naming by HMRC.
What Counts Towards Minimum Wage?
Counts Towards NMW/NLW
Basic hourly pay
Performance bonuses and incentive pay
Commission payments
Most piece rates
Sleep-in shifts (active working time)
Does NOT Count
Tips paid directly by customers
Premium overtime rates (only base counts)
Expenses and travel reimbursement
Benefits in kind (except accommodation)
Pension contributions
Accommodation Offset
Employers can offset a maximum of £9.99 per day (£69.93 per week) from pay for accommodation provided. This is the only benefit that can count towards minimum wage. If charging more than this offset, the excess must not reduce pay below NMW/NLW.
Who Is Entitled to Minimum Wage?
The National Minimum Wage applies to all workers in the UK, including:
Full-time and part-time employees
Agency workers
Workers on zero-hours contracts
Home workers and piece workers
Trainees and interns (in most cases)
Workers on probation periods
Disabled workers (sheltered employment rate was abolished in 2017)
Exempt Categories
Genuine volunteers, self-employed people, company directors (unless also workers), family members in family businesses (living in the home), and some fishermen on share fishing agreements are not entitled to NMW/NLW.
Take-Home Pay Calculation
Understanding how much of your minimum wage earnings you'll actually take home is crucial for budgeting. Here's how tax and National Insurance affect minimum wage workers in 2025/26:
Tax and NI Thresholds 2025/26
Threshold
Annual
Monthly
Weekly
Personal Allowance (Tax-free)
£12,570
£1,047.50
£241.73
NI Primary Threshold
£12,570
£1,047.50
£241.73
Basic Rate Band (20%)
£12,571 - £50,270
Above personal allowance
Employee NI Rate
8% (reduced from 12% in January 2024)
Full-Time NLW Worker (37.5 hrs)
£19,478
Estimated Annual Take-Home
Gross Annual
£22,308
Income Tax
-£1,948
National Insurance
-£779
Take-Home
£19,478
Part-Time NLW Worker (20 hrs)
£11,897
Estimated Annual Take-Home
Gross Annual
£11,897
Income Tax
£0
National Insurance
£0
Take-Home
£11,897
NI Rate Reduction Benefit
The January 2024 NI cut from 12% to 8% means a full-time NLW worker saves approximately £390 per year compared to the previous rate. This puts an extra £32.50 per month in workers' pockets.
Apprentice Minimum Wage Explained
Apprentices have a specific minimum wage rate of £6.40 per hour, but this only applies in certain circumstances. Understanding when the apprentice rate applies is crucial for both employers and apprentices.
When Does the Apprentice Rate Apply?
Situation
Rate Applies
Apprentice aged under 19 (any year of apprenticeship)
Apprentice rate: £6.40/hr
Apprentice aged 19+ in first year of apprenticeship
Apprentice rate: £6.40/hr
Apprentice aged 19+ beyond first year of apprenticeship
Age-appropriate NMW/NLW rate
Example Calculation
A 20-year-old apprentice in their second year is entitled to the 18-20 rate of £8.60/hour, not the apprentice rate. If they turn 21 during their apprenticeship (beyond year 1), they're entitled to the full NLW of £11.44/hour.
Apprenticeship Training Time
Important: Time spent on off-the-job training is considered working time and must be paid at least the minimum wage. This includes:
Classroom or workshop training
Online learning during work hours
Study time for apprenticeship qualifications
Assessment and exam preparation
Holiday Pay for Minimum Wage Workers
All workers, regardless of their wage rate, are entitled to 5.6 weeks (28 days for full-time) of paid annual leave. For minimum wage workers, understanding how holiday pay is calculated is essential.
Calculating Holiday Pay
Holiday pay should be calculated based on normal earnings, including:
Regular overtime
Commission and bonuses
Regular allowances
Regular shift premiums
Worker Type
Holiday Entitlement
Holiday Pay Value (NLW)
Full-time (37.5 hrs/week)
28 days (5.6 weeks)
£2,404
Part-time (20 hrs/week)
15 days pro-rata
£1,282
Zero-hours (varies)
12.07% of hours accrued
Varies
Rolled-Up Holiday Pay
From April 2024, employers can use "rolled-up" holiday pay for irregular hours and part-year workers. This means adding 12.07% to each payment to cover holiday pay. This must be clearly shown on payslips.
Frequently Asked Questions
From April 2024, the National Living Wage (NLW) for workers aged 21 and over is £11.44 per hour. Workers aged 18-20 receive £8.60 per hour, those under 18 get £6.40 per hour, and apprentices in their first year or under 19 receive £6.40 per hour. These represent the largest percentage increases in minimum wage history.
The National Living Wage (NLW) is the higher minimum rate for workers aged 21 and over (£11.44/hour from April 2024). The National Minimum Wage (NMW) applies to younger workers with different rates: 18-20 (£8.60), under 18 (£6.40), and apprentices (£6.40). From April 2024, the NLW age threshold was lowered from 23 to 21, benefiting around 143,000 additional workers.
At £11.44 per hour working 37.5 hours per week for 52 weeks, a full-time worker on National Living Wage earns £22,308 gross per year. After income tax (£1,948) and National Insurance (£779 at 8%), take-home pay is approximately £19,478. This assumes no other deductions such as pension contributions, student loan repayments, or salary sacrifice schemes.
Minimum wage rates are reviewed annually by the Low Pay Commission, with increases typically taking effect from 1st April each year. The April 2025 rates will be announced in the Autumn 2024 Budget or by the Low Pay Commission. The government's target is to align NLW with two-thirds of median earnings, suggesting continued above-inflation increases.
No. Paying below the National Minimum Wage or National Living Wage is illegal. If you're being paid less than the statutory minimum, you should first raise the issue with your employer. If unresolved, you can contact ACAS (Advisory, Conciliation and Arbitration Service) or report the underpayment to HMRC's minimum wage enforcement team. Employers can be fined up to 200% of arrears owed (maximum £20,000 per worker) and publicly named.
No. Tips, gratuities, and service charges do not count towards minimum wage calculations. Since the Employment (Allocation of Tips) Act 2023 came into force on 1 October 2024, tips must be allocated fairly to workers and cannot be used to top up wages to meet minimum wage requirements. Employers must have a written policy on tip distribution.
There's no legal requirement to pay extra for night shifts, weekends, or bank holidays above the minimum wage, though many employers choose to do so. However, you must still receive at least the minimum wage for all hours worked, including night shifts. Any premium rates for unsocial hours are at your employer's discretion, often set out in your contract or workplace policy.
Workers on zero-hours contracts are fully entitled to the National Minimum Wage or National Living Wage for every hour worked. They also accrue holiday pay at 12.07% of hours worked and are entitled to statutory sick pay once they meet the threshold. From April 2024, employers can use rolled-up holiday pay for irregular hours workers, adding 12.07% to each payment.
Sophie is an HR professional with over 8 years of experience advising UK businesses on employment law compliance, including minimum wage regulations. She specialises in helping SMEs navigate complex payroll requirements and ensuring fair pay practices.
Disclaimer
This calculator provides estimates based on 2025/26 rates and standard assumptions. Actual take-home pay may vary based on your specific circumstances, tax code, pension contributions, student loan repayments, and other factors. For official minimum wage enforcement or complex situations, contact HMRC or seek professional HR advice.
Expert Reviewed — This calculator is reviewed by our team of financial experts and updated regularly with the latest UK tax rates and regulations. Last verified: January 2026.
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