What is the Minimum Wage?
The minimum wage is the lowest hourly rate that employers are legally required to pay most workers in the UK. It is set by the government to make sure that employees receive a basic standard of pay for their work, helping to protect people from being underpaid or exploited in the workplace.
The National Minimum Wage (NMW) applies to nearly all workers aged 16 and over, with the National Living Wage (NLW) setting a higher rate for those aged 21 and over. The exact rates depend on your age and whether you are an apprentice. These rates are reviewed and updated each year, usually in April, following recommendations from the independent Low Pay Commission. This means your pay should increase if the minimum wage rate goes up and you meet the eligibility criteria.
The purpose of the minimum wage is to provide a legal baseline for pay, ensuring no one is paid less than the rate set by law. This helps to reduce unfair treatment, support low-paid workers, and promote fair competition among employers.
It’s important to note that the minimum wage is not the same as the “living wage” or fair wages. The living wage is a higher, voluntary rate based on the cost of living, promoted by some employers but not required by law. Meanwhile, fair wages can refer to broader ideas about just pay, taking into account factors like experience, skills, and the nature of the work.
The legal rules around minimum wage are set out in the National Minimum Wage Act 1998 and related regulations. If you are unsure whether you’re getting the correct minimum wage, it’s a good idea to check your payslips and compare your hourly rate to the current legal minimum. If you find you are being paid less than the minimum wage, you have the right to take action to recover the money you are owed.
Who is Entitled to the Minimum Wage?
In the UK, most workers are legally entitled to receive at least the National Minimum Wage (NMW) or, if they are 23 or over, the National Living Wage (NLW). The rules are set out in the National Minimum Wage Act 1998 and updated regularly by the government. Understanding who qualifies is important to make sure you are being paid fairly and know your rights.
The minimum wage applies to almost all workers, regardless of whether you are employed full-time, part-time, on a casual or zero-hours contract, or even if you are an agency worker. It also covers temporary, seasonal, and piece-rate workers. Apprentices are entitled to a special apprenticeship rate or, in some cases, the standard minimum wage depending on their age and stage of apprenticeship.
To be eligible, you must:
Be at least school leaving age (usually 16).
Be classed as a ‘worker’ (which includes employees, agency workers, and some casual workers).
It doesn’t matter how many hours you work or how you are paid—hourly, weekly, monthly, or by the task—you are still entitled to the minimum wage.
The amount you are entitled to depends on your age and whether you are an apprentice. The rates are reviewed every April. As of April 2024, the rates are:
National Living Wage (age 21 and over): £11.44 per hour
Ages 18 to 20: £8.60 per hour
Under 18: £6.40 per hour
Apprentices: £6.40 per hour (if under 19, or 19 and over but in the first year of apprenticeship)
If you are an apprentice aged 19 or over and have completed the first year of your apprenticeship, you are entitled to the minimum wage for your age group.
If you are 22 years old and working part-time in a café, your employer must pay you at least £11.44 per hour. If you are 18 and working in a shop, you should receive at least £8.60 per hour.
The law covers a wide range of working arrangements, including:
Full-time and part-time employees
Casual workers and zero-hours contracts
Agency workers
Temporary and seasonal workers
Piece workers (paid by the task or item produced)
Apprentices (with specific rules for age and apprenticeship year)
While most workers are covered, there are some exceptions. You are not entitled to the minimum wage if you are:
Self-employed (working for yourself rather than for an employer)
A volunteer or doing unpaid work experience
A member of the armed forces
A family member working in a family business and living in the family home
A resident worker not paying for accommodation or meals (e.g., au pairs, nannies in the family home)
A student on a work placement lasting less than one year as part of a UK-based further or higher education course
It’s important to check your status if you are unsure, as some roles that seem like ‘volunteering’ may actually qualify for minimum wage if you are expected to do specific work for an employer.
If you think you are being paid less than the minimum wage, keep clear records of your hours and pay. Check your payslips and employment contract to ensure you are being paid the correct rate for your age and status. If you believe you are not receiving the correct amount, you have the right to challenge your employer and seek support.
Understanding these rules helps you protect your rights at work and ensures you receive at least the legal minimum for your efforts.
How is the Minimum Wage Set?
In the UK, the minimum wage is set through a careful process involving both the government and an independent advisory body called the Low Pay Commission (LPC). The main laws governing the minimum wage are the National Minimum Wage Act 1998 and the National Minimum Wage Regulations 2015. These laws ensure that most workers are legally entitled to a minimum hourly rate for their work.
The Low Pay Commission is an independent group made up of employers, trade unions, and experts. Each year, the LPC researches the state of the labour market, gathers evidence from businesses and workers, and considers the impact of the minimum wage on jobs and the wider economy. Based on this evidence, the LPC makes recommendations to the government on what the rates should be for the next year.
The UK government reviews the recommendations from the Low Pay Commission and then decides whether to accept them. In most cases, the government follows the LPC’s advice, but it has the final say. Once the rates are agreed, the government announces the new minimum wage rates, which usually come into effect at the start of April each year.
This annual review process means that the minimum wage can be updated regularly to reflect changes in the economy and to help protect workers’ living standards.
Several factors are considered when setting new minimum wage rates, including:
Economic Conditions: The health of the economy, levels of employment, and business profitability all influence rate decisions.
Cost of Living: The LPC looks at inflation and how much it costs to live in the UK, to help ensure wages keep up with rising expenses.
Impact on Jobs: The potential effect of wage increases on employment levels and business sustainability is carefully assessed.
Wage Growth: Trends in average earnings across the country are taken into account.
For example, if the cost of living rises sharply, the LPC may recommend a higher increase to help workers keep up with everyday expenses. On the other hand, if the economy is struggling, the increase might be smaller to avoid putting extra pressure on employers.
The government publishes the latest minimum wage rates on its official website and updates them every year. These rates vary depending on your age and whether you are an apprentice. It’s important to check the most recent rates to make sure you are being paid correctly. Employers are legally required to pay at least the minimum wage, and failing to do so can result in penalties.
If you are unsure about your entitlement or think you are being paid less than the legal minimum, you can seek advice and take steps to resolve the issue. Always check the current rates and keep records of your pay to protect your rights.
Your Rights if You Are Paid Less Than the Minimum Wage
If you think you are being paid less than the minimum wage, it’s important to know your rights and what steps you can take to resolve the issue. In the UK, the National Minimum Wage and National Living Wage are set by the government and reviewed annually. Employers are legally required to pay at least the current minimum rate for your age or apprenticeship status.
First, check your hourly pay rate against the official minimum wage rates, which depend on your age and whether you are an apprentice. Remember to include all the hours you have worked, including overtime, and any deductions made by your employer (except for tax and National Insurance). If you’re unsure, you can use online calculators or check your payslips to see if your pay meets the legal minimum.
Speak to Your Employer: Often, underpayments are due to mistakes or misunderstandings. Raise the issue informally with your employer or payroll department. Explain your concerns and ask for a breakdown of your pay.
Keep Records: Collect evidence such as payslips, employment contracts, timesheets, and any correspondence with your employer. This documentation will be useful if you need to take further action.
Check for Backdated Pay: If you have been underpaid, you may be entitled to claim backdated pay for the period you were paid less than the minimum wage.
Raise a Formal Grievance: If your employer does not resolve the issue informally, you can follow your workplace’s grievance procedure. This is a formal way to raise concerns and may help to resolve the matter internally.
If you need further support, you can contact the Advisory, Conciliation and Arbitration Service (Acas) for free and confidential advice. You can also report your employer to HM Revenue & Customs (HMRC), who are responsible for enforcing minimum wage laws. HMRC can investigate your complaint without revealing your identity to your employer.
For more information on what to do if your employer refuses to pay you correctly, see our guidance on unpaid wages.
If it’s found that you have been underpaid, your employer will be required to pay you the difference, which can include backdated pay for up to six years in England, Wales, and Northern Ireland (five years in Scotland). HMRC may also issue fines to employers who fail to pay the minimum wage.
Taking action can feel daunting, but you are protected by law against being treated unfairly or dismissed for asserting your right to the minimum wage. If you have concerns, seek advice early to understand your options and protect your rights.
Related Pay Rights You Should Know About
Understanding your right to the minimum wage is just one part of making sure you are paid fairly at work. There are several other important payment rights in the UK that help protect you and ensure transparency in how you are paid. Here are some key pay rights closely connected to the minimum wage:
By law, most workers in the UK are entitled to receive an itemised payslip each time they are paid. Your payslip should clearly show your gross pay, any deductions (such as tax or National Insurance), and your net pay (the amount you actually receive). Payslips are essential for checking that you are being paid at least the minimum wage and for spotting any unexpected deductions or errors.
If your employer wants to reduce your pay, there are strict rules they must follow. Any pay cuts must be agreed with you first—your employer cannot simply cut your pay without your consent. They must also ensure that, even after a pay cut, your pay does not fall below the legal minimum wage. If you are facing a pay cut, it’s important to know your rights and seek advice before agreeing to any changes.
When you leave a job, you are still entitled to receive all the pay you have earned, including any outstanding holiday pay or bonuses. Your final paycheck should include everything you are owed up to your last working day. Employers must pay you on your usual payday, and the same minimum wage rules apply. If you think your final pay is incorrect, you have the right to challenge it.
These related pay rights work together to support fair treatment at work. Always check your payslips, be aware of your rights if your pay changes, and make sure you receive everything you are owed when your job ends. If you have concerns about any aspect of your pay, understanding these rights can help you take the right steps to resolve the issue.
Support When You Are Sick and Minimum Wage
When you are off work due to illness, your rights around pay can be confusing—especially when it comes to the minimum wage. Here’s what you need to know about how sick leave and sick pay interact with minimum wage laws in the UK.
If you are unable to work because you are ill, your employer is not required to pay your usual wage. Instead, most employees are entitled to Statutory Sick Pay (SSP). It’s important to note that SSP is a fixed weekly amount set by the government, not a rate based on the minimum wage. This means that, during periods when you are receiving SSP, your pay may actually fall below the National Minimum Wage or National Living Wage rates. This is allowed under UK law, as minimum wage rules apply only to hours you actually work, not to periods of sickness absence.
Most employees qualify for SSP if they have been off work sick for at least four days in a row (including non-working days), earn at least £123 per week (before tax), and have informed their employer according to the company’s rules. As of April 2024, SSP is paid at £109.40 per week, for up to 28 weeks. Some employers offer more generous sick pay schemes—often called ‘occupational’ or ‘contractual’ sick pay—so it’s worth checking your employment contract or staff handbook.
If you’re unwell and concerned about your income, you should:
Tell your employer as soon as possible, following any procedures they have for reporting sickness.
Check if you qualify for SSP and whether your employer offers any additional sick pay.
Review your payslips to make sure you are being paid correctly while you are off sick.
Remember, you are still entitled to holiday pay and other employment rights while on sick leave.
If you think you are not receiving the correct sick pay, or if you are being underpaid during your sickness absence, you should raise the issue with your employer first. If the problem isn’t resolved, you can seek advice from Acas or a local Citizens Advice Bureau.
For more detailed guidance on your rights and what to expect when you’re off work sick, visit our section on sick leave and sick pay. This resource explains eligibility, how to claim, and what to do if there’s a problem with your sick pay.
Understanding how minimum wage and sick pay work together can help you feel more secure if you need time off due to illness. If you have further questions about your pay rights, you can also explore our advice on other pay rights and what to do if you face pay issues.
