Glossary · UK
What is National Minimum Wage and National Living Wage?
The statutory minimum hourly pay rates for UK workers: GBP 12.21/hour for workers aged 21+ (National Living Wage) from April 2025, with lower rates for younger workers and apprentices.
Full Definition
The National Minimum Wage (NMW) and National Living Wage (NLW) are the minimum hourly rates that employers in the UK are legally required to pay. The National Living Wage applies to workers aged 21 and over. From 1 April 2025 the rates are: National Living Wage (age 21+): GBP 12.21 per hour; National Minimum Wage (age 18-20): GBP 10.18 per hour; National Minimum Wage (under 18, not an apprentice): GBP 7.55 per hour; Apprentice rate (apprentices under 19, or any age in their first year of apprenticeship): GBP 7.55 per hour. Rates are reviewed annually by the Low Pay Commission and typically increase each April. Workers above the apprentice rate and aged 19+ in their second year or later of an apprenticeship are entitled to the relevant age-related NMW rate. The rates apply to most workers including agency staff, part-time workers, home workers, and casual workers. Employers who underpay face: a financial penalty of up to 200% of the underpayment (minimum GBP 100, maximum GBP 20,000 per worker); repayment of all underpaid wages; and public naming on the HMRC underpayment list. Certain groups are exempt, including the self-employed, company directors (unless they have a contract of employment as a worker), volunteers, and family members working in a family business. The statutory Living Wage and London Living Wage are voluntary higher rates set by the Living Wage Foundation, separate from the statutory NMW/NLW.