National Minimum Wage and Living Wage

The National Minimum Wage (NMW) and National Living Wage (NLW) rates are set by the government each April following recommendations from the Low Pay Commission. The rates from 1 April 2024 are:

• National Living Wage (aged 21+): £11.44 per hour
• 18–20 year rate: £8.60 per hour
• 16–17 year rate: £6.40 per hour
• Apprentice rate: £6.40 per hour (applies to apprentices under 19, or those in the first year of their apprenticeship)

Note: The Real Living Wage is a separate voluntary initiative run by the Living Wage Foundation (£12.00 per hour, or £13.15 in London). This is not a legal requirement, but many accredited employers pay it. Check whether your employer is a Living Wage employer if this matters to you.

Rates are reviewed annually. For the most current figures, check the GOV.UK minimum wage page.

Almost all workers — including part-time workers, casual workers, agency workers, and zero-hours contract workers — are entitled to the NMW or NLW. The entitlement applies regardless of how the worker is paid (hourly, salaried, commission-only, piece-rate).

However, the following are not entitled to the minimum wage:

• Genuinely self-employed people (sole traders running their own business)
• Company directors who are not employees
• Volunteers (including charity volunteers who receive only genuine out-of-pocket expenses)
• Members of the employer's family who live in the family home
• Students on certain work placements of up to one year

Whether a person is a worker or genuinely self-employed is a legal question based on the reality of the working relationship, not simply the label in any contract. Misclassifying workers as self-employed to avoid minimum wage obligations is unlawful.

When calculating whether the minimum wage has been paid, not everything received counts as pay, and certain deductions reduce the effective hourly rate. The following do not count towards minimum wage calculations:

• Tips, gratuities, and service charges
• Premium rates for overtime or shift working above the basic rate
• Allowances (e.g. for working unsocial hours, travel, or accommodation)
• Loans or advances from your employer

Additionally, deductions for things that are primarily for the employer's benefit — such as uniforms your employer requires you to buy, tools you must purchase, or accommodation provided by the employer above the accommodation offset rate — reduce the effective rate of pay for NMW purposes.

To check whether you are being paid correctly, divide your total qualifying pay by the total hours worked in the pay reference period. If the result is below the applicable NMW rate, you are being underpaid.

If you believe you are being paid less than the minimum wage, you have several options:

• Raise it with your employer: A conversation or written query to HR may resolve the issue quickly. It is possible the underpayment is a genuine administrative error.
• Report to HMRC: HMRC enforces the minimum wage. You can report anonymously via the Pay and Work Rights helpline (0300 123 1100) or online. HMRC will investigate and can order back-payment of up to six years of underpayments plus a financial penalty of up to 200% of the underpayment (minimum £100, maximum £20,000 per worker).
• Employment Tribunal claim: You can bring a claim for unlawful deduction from wages, which must be preceded by Acas Early Conciliation.

You cannot be lawfully dismissed or subjected to a detriment for asserting your right to the national minimum wage — doing so would be automatically unfair dismissal and there is no qualifying period of service required to bring such a claim.