UK minimum wage: Current rates and key rules for employers

On 1 April 2025, the UK's national minimum wage and national living wage rates changed again. If you’ve got staff, you need to know what the new numbers are, and how they apply to your team.

Staying on top of national minimum wage rules goes beyond doing the right thing. If you get it wrong, you could face fines, be publicly named and shamed, or owe thousands in back pay. And that’s even before you deal with the admin nightmare.

In this guide, we share exactly what the UK minimum wage and national living wage rules are right now. We explain who gets what and show you how to stay on the right side of the law without making life harder for yourself or your payroll team.

All information in this article is accurate as of April 2025. Wage rates and employment laws can change, so always check www.gov.uk for the latest information. 

What is minimum wage in the UK?

The UK has two legal minimum pay rates: the national minimum wage and national living wage.​

• The national minimum wage (NMW) applies to most workers under 21 and to apprentices.
• The national living wage (NLW) applies to most workers aged 21 and over.

This applies as of 1 April 2024, when the national living wage threshold officially dropped from age 23 to 21. Before that, workers aged 21 or 22 only received the national minimum wage. Now, anyone 21 and up gets the higher national living rate.

The government sets these rates and reviews them annually. As an employer, you need to pay at least the applicable rate for every hour worked.

Current UK minimum wage rates 

Here are the minimum rates you need to pay your staff as of 1 April 2025, based on their age and role:

National minimum wage rules employers need to follow

Paying the right rate isn’t optional. If you underpay someone, even by accident, you could face serious consequences. HMRC can fine you up to 200% of the underpayment (capped at £20,000 per worker). They can also force you to pay back every penny you owe and even put your company’s name on a public list of offenders. It’s not a good look. And it’s certainly not worth the risk.

Here are a few key rules that employers must follow when it comes to national minimum wage and national living wage rates:

Pay must meet the minimum for total hours worked

The minimum wage doesn’t just cover time spent doing the job itself. It also includes things like:

• Training time (if it’s job-related)
• Travel between work sites (not the commute, but travel during work hours)
• Waiting time (for example, between appointments or shifts)

If someone’s on the clock, you need to count that time as time worked. It doesn’t matter if they’re actively working or just waiting around. They still need to be paid at least the legal minimum for every hour.

Deductions that could push pay below minimum wage

Some deductions are fine. But others can tip someone’s pay below the legal minimum wage or national living wage. And that’s where problems start. Here are a few common ones to watch out for:

• Uniform costs
• Equipment or tools required for the job
• Unpaid breaks
• Charges for food or accommodation (over the allowed offset)

Let’s say someone earns exactly minimum wage, but you ask them to buy their own uniform. That cost can technically bring their average pay below the threshold. And just like that, you’re in breach.

Who does and doesn’t qualify for the minimum wage

Most workers in the UK have a right to the national minimum wage or national living wage. However, there are a few exceptions. Those who don't have a right to these legal minimum pay rates are:

• Genuine volunteers and unpaid interns
• Some family members working in a family-run business
• Self-employed workers who set their own rates and invoices
• People on certain government training schemes
• Company directors (unless they have a contract and are being paid a wage)

If you’re not sure where someone fits, check before you pay less. A wrong guess could cost you a lot more than you think.

How to stay compliant

To keep up with minimum wage rules, you need to understand more than just the rates. You also need to put the right systems in place to stay on track. This is especially true if you’ve got a growing team or you’re paying employees across different roles and age brackets. Here are a few ways you can make it easier:

Run regular payroll audits

Mistakes happen. But if you never check, you’ll never catch them. A simple payroll audit every month or each quarter can help spot underpayments before they turn into a bigger problem. Check actual hours worked against what’s been paid. And look out for any missed pay rises, age threshold changes, or staff moving off the apprentice rate.

A quick audit now could save you thousands later.

Use reliable HR and payroll software

If you’re still using spreadsheets to manage HR and payroll, you're asking for trouble. A proper payroll system keeps everything in one place, from contracts to working hours and pay history. It should track changes automatically and make sure you’re paying employees the right hourly rate for their age and role. This is the simplest way to reduce admin and avoid slipping below the legal threshold without realising.

Keep accurate records and contracts

This one's easy to skip, but it matters. If HMRC investigates, you need clear evidence of hours worked, contracts signed, and rates paid. So, make sure contracts spell out the employee’s rate of pay and any agreements around working time. Keep notes on every pay rise and when someone moves off the apprentice rate. If you’ve got the paperwork sorted, you’ll have nothing to worry about.

Consider automation to avoid errors

Manual data entry is risky. If someone types the wrong number or forgets to update a pay rate, that could tip an employee below the minimum. Automation removes a lot of that risk. Smart HR and payroll systems can track and apply important things automatically. For example, it can track when someone turns 21, flag missed pay increases, and apply the accommodation offset properly. This can mean less admin for you, fewer errors, and a much better chance of staying compliant.

Run payroll accurately. On time. Every time.

Keeping up with wage changes and making sure everyone gets paid properly can be a full-time job in itself. Even more so when you’ve got different age brackets, hourly rates, apprentice rules, and start dates to track. That’s where Rippling comes in.

Rippling’s UK payroll software is built to handle all of it. It automatically calculates the right pay based on someone’s age, role, and hours worked. It knows when someone turns 21 and should move to the higher rate. It even applies the apprentice rate correctly. And when the national minimum wage or national living wage changes, the system updates the new rates for you. So, no manual tweaks required, and no risk of missing the change.

Because it’s part of an all-in-one HR and workforce management platform, Rippling's Payroll doesn’t sit in a silo. HR, Payroll, IT, and Spend all connect. They're all built on one single source of truth. So, when someone’s job title changes, or they go full time, that change flows through everywhere. And it flows instantly. This means you could say goodbye to spreadsheets, double-handling, and sync issues.

Want to stay compliant without drowning in admin? This is the kind of payroll system that makes a real difference.

National minimum wage and national living wage FAQs

What is the minimum salary in the UK?

There’s no single 'minimum salary' in the UK. This is because the law sets hourly rates rather than annual ones. What you owe depends on someone’s age and status. As of 1 April 2025, the national minimum wage is £10.00 for workers aged 18–20 and £7.55 for those under 18 or on the apprentice rate. For workers aged 21 and over, the national living wage applies. It’s currently £12.21 per hour.

These are legal minimums. You must pay all your UK workers at least the rate that matches their category. This isn’t optional. It’s a legal requirement.

How much is 40 hours a week minimum wage in the UK?

Let's say you have an eligible full-time worker aged 21 or over, working 40 hours a week on the national living wage of £12.21. In this case, you should be paying them at least £488.40 per week before tax.

If they're under 21, the national minimum wage applies. So, the total would be different. For example, an 18–20-year-old on £10.00 an hour would earn £400 for the 40 hours.

Just remember, these are before tax and don’t include things like overtime or bonuses.

How often does the UK minimum wage increase?

The government reviews the national minimum wage and national living wage every year. Changes usually kick in on 1 April each year. So, if you’ve got staff on minimum pay, you’ll need to update their rate every time the government announces a change. It's legally required.

The most recent change was on 1 April 2025.

What's the real living wage?

The real living wage is different from the national living wage and the national minimum wage. It’s a voluntary rate set by the Living Wage Foundation. And it's based on what it actually costs to live in the UK.

As of April 2025:

• The real living wage is £12.60 per hour across most of the UK
• The London living wage is £13.85

There's no legal requirement for you to pay these rates. But many businesses do, especially those that want to stand out as a good employer.

This blog is based on information available to Rippling as of May 2, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.