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Mustafa Bilgic
Updated: 20 February 2026 · UK Employment & Wages Researcher

Current National Minimum Wage Rates — April 2025

National Living Wage (21+)
£12.21
per hour
From April 2025
Age 18–20
£10.00
per hour
From April 2025
Age 16–17
£7.55
per hour
From April 2025
Apprentice Rate
£7.55
per hour
From April 2025

The apprentice rate applies to apprentices aged 16-18 and those aged 19+ in the first year of their apprenticeship. After completing year one, apprentices 19+ receive the rate appropriate for their age.

📈 Minimum Wage Earnings Calculator

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Complete NMW Rate History — 1999 to 2025

All rates are the hourly minimum wage effective from October of each year (April from 2010 onwards). Figures shown are the rates applicable from April of the stated year unless otherwise noted.

Year NLW / Adult Rate (25+/21+) 21–24 Rate 18–20 Rate 16–17 Rate Apprentice
2025 (Apr)£12.21 (NLW, 21+)£10.00£7.55£7.55
2024 (Apr)£11.44 (NLW, 21+)£8.60£6.40£6.40
2023 (Apr)£10.42 (NLW, 23+)£10.18£7.49£5.28£5.28
2022 (Apr)£9.50 (NLW, 23+)£9.18£6.83£4.81£4.81
2021 (Apr)£8.91 (NLW, 23+)£8.36£6.56£4.62£4.30
2020 (Apr)£8.72 (NLW, 25+)£8.20£6.45£4.55£4.15
2019 (Apr)£8.21 (NLW, 25+)£7.70£6.15£4.35£3.90
2018 (Apr)£7.83 (NLW, 25+)£7.38£5.90£4.20£3.70
2017 (Apr)£7.50 (NLW, 25+)£7.05£5.60£4.05£3.50
2016 (Apr)£7.20 (NLW, 25+)£6.70£5.30£3.87£3.30
2015 (Oct)£6.70£6.70£5.30£3.87£3.30
2014 (Oct)£6.50£6.50£5.13£3.79£2.73
2013 (Oct)£6.31£6.31£5.03£3.72£2.68
2012 (Oct)£6.19£6.19£4.98£3.68£2.65
2011 (Oct)£6.08£6.08£4.98£3.68£2.60
2010 (Oct)£5.93£5.93£4.92£3.64£2.50
2009 (Oct)£5.80£5.80£4.83£3.57N/A
2008 (Oct)£5.73£5.73£4.77£3.53N/A
2007 (Oct)£5.52£5.52£4.60£3.40N/A
2006 (Oct)£5.35£5.35£4.45£3.30N/A
2005 (Oct)£5.05£5.05£4.25£3.00N/A
2004 (Oct)£4.85£4.85£4.10£3.00N/A
2003 (Oct)£4.50£4.50£3.80£3.00N/A
2002 (Oct)£4.20£4.20£3.60N/AN/A
2001 (Oct)£4.10£4.10£3.50N/AN/A
2000 (Jun)£3.70£3.70£3.20N/AN/A
1999 (Apr)£3.60£3.60£3.00N/AN/A

Green rows indicate the National Living Wage era (from April 2016). The NLW initially applied to workers 25+, extended to 23+ from April 2021, and to 21+ from April 2024.

The Story of the National Minimum Wage

1999NMW Introduced — A Historic Moment

The National Minimum Wage Act 1998 came into force on 1 April 1999, creating the UK's first statutory wage floor. The initial rate of £3.60/hour for workers 22+ was hugely controversial — business groups warned of mass unemployment, while unions argued it was too low. About 1.5 million workers received an immediate pay rise.

2001–2010Steady Annual Increases

The Low Pay Commission, established under the Act, recommended annual increases roughly in line with earnings growth. By 2010 the adult rate had risen to £5.93/hour — a 65% increase in nominal terms over 11 years, though real-terms growth was more modest given inflation.

2010Apprentice Rate Introduced

A specific apprentice rate (initially £2.50/hour) was introduced in October 2010, covering apprentices aged 16-18 and those aged 19+ in their first year of an apprenticeship. The rate was lower to encourage employer investment in training.

2016National Living Wage Launched

Chancellor George Osborne announced a "National Living Wage" in his July 2015 Budget, effective April 2016 at £7.20/hour for workers aged 25+. This was a significant uplift above the existing NMW (£6.70) and signalled a new government ambition to raise the wage floor much faster. The target was 60% of median earnings by 2020.

2021NLW Extended to Age 23+

From April 2021, the National Living Wage was extended to workers aged 23 and 24, with the rate rising to £8.91. This removed the 21-24 "development rate" for older young workers, acknowledging that the difference was hard to justify.

2024NLW Extended to Age 21+ — £11.44

A landmark uplift brought the NLW to £11.44/hour — a 9.8% increase — and extended it to all workers aged 21+, further narrowing age discrimination in the wage floor. The 18-20 rate jumped to £8.60 (+14.8%), the biggest proportional increase for younger workers in years.

2025£12.21 — Approaching £15 Target

The 2025 NLW of £12.21/hour (up 6.7%) keeps pace with the Government's ambition to maintain the rate at two-thirds of median earnings. The 18-20 rate hits £10.00 for the first time — a psychologically significant milestone. The Government has signalled ambitions for a further harmonisation of age bands in coming years.

Why Was the National Minimum Wage Introduced?

Before 1999, the UK had no statutory minimum wage (Wages Councils, which set minimum rates in specific sectors, were abolished in 1993). Workers in low-paid sectors — retail, hospitality, cleaning — had no legal floor on their pay. The NMW was a flagship 1997 New Labour manifesto commitment, supported by academic evidence from the US that modest minimum wages do not necessarily increase unemployment, and can reduce in-work poverty.

The Low Pay Commission

The Low Pay Commission (LPC) is an independent non-departmental public body established in 1997. It comprises nine commissioners representing business, unions, and academia. It researches the UK labour market, consults widely, and makes recommendations to the Government on NMW rates each year. Since 2016 it has been given a specific target to aim for (currently: NLW at two-thirds of median hourly earnings, subject to economic conditions).

Real-Terms Growth

The adult NMW was £3.60 in 1999. Adjusted for CPI inflation to 2025, that equals roughly £6.80 in today's money — meaning the NLW at £12.21 represents a significant real-terms improvement in the wage floor over 26 years.

Enforcement

HMRC enforces NMW compliance. Employers found underpaying face arrears repayment, a penalty of up to 200% of arrears (max £20,000 per worker), and potential public naming and shaming on the HMRC website.

Sector Impact

Retail, hospitality, cleaning, and social care are most affected by NMW increases. The 2025 rates are estimated to directly affect approximately 3 million workers — around 10% of the UK workforce.

Future Direction

The current Government has signalled it wants to eliminate the youth age brackets over time, moving toward a single adult rate applicable from age 18. Consultation on the timeline is ongoing.

Frequently Asked Questions

When was the National Minimum Wage introduced in the UK?
The UK National Minimum Wage was introduced on 1 April 1999 under the National Minimum Wage Act 1998, during the Blair government. The initial adult rate was £3.60 per hour for workers aged 22 and over, and £3.00 for those aged 18–21. At the time, around 1.5 million workers received an immediate pay rise. The UK was relatively late among developed economies — Australia introduced a minimum wage in 1907, and the US Federal minimum wage dates to 1938.
What is the National Living Wage and when did it start?
The National Living Wage (NLW) is a higher tier of the statutory minimum wage, introduced in April 2016 at £7.20/hour for workers aged 25 and over. It was announced by Chancellor George Osborne in the July 2015 Budget as part of a "high wage, low tax" economic strategy. The NLW was extended to workers aged 23+ from April 2021, and to workers aged 21+ from April 2024. It is distinct from the voluntary "Real Living Wage" set by the Living Wage Foundation, which is based on actual living costs.
What is the National Minimum Wage for 2025?
From April 2025, the rates are: National Living Wage (age 21+): £12.21/hour. Age 18–20: £10.00/hour. Age 16–17: £7.55/hour. Apprentice rate: £7.55/hour. These rates apply from 1 April 2025 and were confirmed by the Low Pay Commission following consultation in autumn 2024.
Who sets the National Minimum Wage rate?
The Low Pay Commission (LPC) makes recommendations each year after extensive research and consultation with businesses, trade unions, workers, and economists. The LPC publishes its report in the autumn, and the Government then decides whether to accept the recommendations — which it has done in full since 2016. The LPC is guided by a remit from the Government specifying the target for the NLW (currently two-thirds of median hourly earnings, subject to economic conditions).
What happens if an employer pays less than minimum wage?
Paying below the National Minimum Wage is illegal. HMRC enforces compliance and can: (1) Order repayment of all arrears to workers. (2) Issue a Notice of Underpayment with a civil penalty of up to 200% of total arrears owed, capped at £20,000 per worker. (3) Prosecute the employer (criminal offence). (4) Name and shame the employer on the HMRC website. Workers can also complain to ACAS or bring an employment tribunal claim for unlawful deduction from wages. There is no statute of limitations on HMRC enforcement action.
Is the National Minimum Wage the same as the Living Wage Foundation rate?
No — these are two different things. The National Minimum Wage / National Living Wage is a legal requirement set by the Government. The Living Wage Foundation's "Real Living Wage" is a voluntary rate calculated by the Resolution Foundation based on what a basket of goods and services actually costs to live on. For 2024/25 the Real Living Wage was £12.60/hour outside London and £13.85/hour in London — both above the statutory NLW. Around 15,000 employers have voluntarily accredited as Living Wage Foundation employers.
Are there any workers who are exempt from the National Minimum Wage?
Yes, several categories are exempt: (1) Self-employed people (they set their own rates). (2) Company directors who are not also workers. (3) Family members of the employer living in the employer's household. (4) Voluntary workers (true volunteers with only expense reimbursement). (5) Workers on certain government schemes. (6) Students on work placements of up to one year that are a required part of a course of study. Living-in domestic workers (such as au pairs who receive board and lodging) may also have different calculations applied.

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