As of April 2024, the UK government mandates a tiered pay structure known as the National Living Wage and National Minimum Wage, which vary by age and apprenticeship status. For instance, workers aged 21 and over are entitled to at least £11.44 per hour under the National Living Wage, while younger employees and apprentices have lower, age-specific rates. These figures are reviewed annually, reflecting economic shifts and policy priorities.

But the minimum wage in the UK isn’t just about numbers on a payslip. It’s a tool to combat inequality, promote dignity in work, and ensure businesses contribute fairly to their workforce. Yet questions linger: Who qualifies? How is it enforced? What happens if employers don’t comply? And how has this system evolved over time?

In this blog, we’ll break down everything you need to know about the UK’s minimum wage, including:

• Current and upcoming rates and how they’re calculated.
• Eligibility criteria based on age, role, and employment type.
• The difference between the National Living Wage and the National Minimum Wage.
• Common questions regarding minimum wages in the UK.

By the end, you’ll have a clear, actionable understanding of your rights or responsibilities, no matter which side of the paycheck you’re on. Let’s dive in!

Minimum Wage in the UK for 2024 & 2025

Current Minimum Wage Rates

Effective from 1 April 2024:

• National Living Wage (21+): £11.44/hour (9.8% increase from 2023)
• 18–20-year-olds: £8.60/hour
• Under 18: £6.40/hour
• Apprentices: £6.40/hour (if under 19 or in their first year)
• Accommodation Offset: £9.99/day (deduction for employer-provided housing)

Key changes in 2024:

The National Living Wage (NLW) age threshold was lowered from 23 to 21, aligning younger workers with higher pay standards. The NLW reached two-thirds of median earnings for workers aged 21+, the highest real-terms value in its history 411.

Upcoming Minimum Wage Rates

Effective from 1 April 2025

Key changes in 2025:

• Largest-ever increases for younger workers: The 18–20 rate rises by 16.3%, narrowing the gap with the NLW. Apprentices and under-18s see an 18% hike, restoring their rates’ historical value relative to the NLW.
• Economic context: The NLW is projected to remain at two-thirds of median earnings, with the 2025 rate (£12.21) designed to protect low-paid workers from inflation through 2026.
• Future plans: The government aims to extend the NLW to 18-year-olds, phasing out the 18–20 rate.

Thereby, a full-time NLW worker (37.5 hours/week) will earn £23,873.60 annually in 2025, up £1,505 from 2024. Businesses face rising costs, with warnings about reduced hiring or price hikes. Besides, employers must comply or face penalties. Use the government’s calculator to verify pay.

In case you are interested in the historical context, the NLW has risen 70% in real terms since its 1999 introduction, significantly reducing pay inequality. Simultaneously, the 2024 NLW is 30% higher than the 2015 rate, reflecting policy shifts to prioritise low-income workers.

Who is Entitled to the Minimum Wage?

Employees vs. Self-Employed

Employees (Workers) are entitled to the minimum wage if they have a contract of employment (written, verbal, or implied). It includes full-time, part-time, casual, agency, and zero-hours contract workers. And it applies regardless of how they’re paid (hourly, salary, piecework, or commission).

Self-employed are not entitled to the minimum wage. For example, Freelancers, contractors, and gig economy workers are classified as self-employed (e.g., some delivery drivers).

Employers sometimes misclassify workers as self-employed to avoid paying minimum wage. If you’re treated like an employee (e.g., set hours, mandatory uniforms), you may be entitled to minimum wage.

Apprentices

You are entitled to the apprentice rate if you are under 19 or are in the first year of the apprenticeship (regardless of age). After the first year, apprentices aged 19+ must be paid the minimum wage for their age group. For example, a 20-year-old apprentice in their second year earns the 18–20 rate (£8.60 in 2024).

Workers Under 18

Under 18s are entitled to the youth rate (£6.40/hour in 2024, rising to £7.55 in 2025). It applies to all workers aged 16–17, including part-time, school/college students, and weekend workers. The only exemptions are work experience placements (under 16 or still in compulsory education) and volunteering (no formal employment contract).

Interns, Trainees, and Volunteers

Paid interns are entitled to the minimum wage if they have a contract to perform work (even if called an “internship”). Unpaid interns are only legal if the internship is voluntary (no obligation to work) it’s part of a UK-based further/higher education course, or the intern is shadowing staff (not doing productive work).

Trainees are entitled to minimum wage unless the training is part of a government-funded program (e.g., apprenticeships). Volunteers are not entitled to minimum wage (no contractual obligation to work).

Other Exceptions

• Family members: No entitlement if working in a family business and living at home (e.g., a child helping in a parent’s shop).
• Company directors: No entitlement if they have no employment contract.
• Workers in the armed forces.
• Prisoners doing work as part of their sentence.

How the Minimum Wage in the UK is Determined

The LPC is an independent advisory body that recommends rates for the National Living Wage (NLW) and National Minimum Wage (NMW) that balance worker protection with economic sustainability. The LPC and government consider multiple factors when setting rates:

1. Inflation and Cost of Living: If the rates are adjusted to protect workers’ purchasing power. For example, the 2024 NLW (£11.44) included a 9.8% rise to offset high inflation.
2. Median Earnings: The NLW is pegged to two-thirds of median hourly earnings for workers aged 21+ (achieved in 2024) to ensure wages keep pace with overall pay growth.
3. Economic Growth and Employment: The LPC assesses whether higher wages could lead to job losses or reduced hiring, particularly in low-margin sectors like retail and hospitality.
4. Business Costs: Employers’ ability to absorb wage increases (e.g., energy prices, supply chain disruptions).
5. Government Policy Goals: Political priorities, such as reducing income inequality or supporting younger workers (e.g., the 2025 NLW expansion to 18-year-olds).

The minimum wage is updated every April through this structured process. Like in 2024, the LPC recommended lowering the NLW age threshold from 23 to 21 to align with median earnings targets. The government accepted this, boosting pay for 21–22-year-olds.

Is the UK’s Minimum Wage Fair?

Unfortunately, the minimum wage in the UK is still below the Real Living Wage (£13.15 in London) advocated by unions. On top of this, there are enforcement gaps as well. Some employers underpay despite penalties

But the good side is it is ranked 5th globally in absolute terms. Besides, it has a progressive age-tiered structure, with significant increases for younger workers in 2025 (e.g., 16–17-year-olds: +18%) 

Conclusion

Looking ahead, the government’s plan to expand the NLW to 18-year-olds by 2025 signals a shift toward simpler, fairer rules. But true fairness will require addressing regional cost disparities and ensuring wages keep pace with essentials like rent and food.

For now, whether you’re an employee or employer, staying informed is key. Use tools like the government’s wage calculator to check compliance, and remember: fair pay isn’t just about numbers—it’s about dignity, stability, and shared growth.

The journey continues, but every step forward counts.

FAQs