National Minimum Wage April 2025 — New Rates and How to Check You're Being Paid Correctly
New National Minimum Wage and National Living Wage rates came into force on 1 April 2025. Here are all the rates, who qualifies for each, and what to do if your employer is paying you less than the legal minimum.
The New Rates from April 2025
The Low Pay Commission recommended the following increases, which the government accepted and which took effect from 1 April 2025:
- National Living Wage (age 21 and over): £12.21 per hour (up from £11.44 — a 6.7% increase)
- National Minimum Wage (age 18–20): £10.00 per hour (up from £8.60 — a 16.3% increase)
- National Minimum Wage (age 16–17): £7.55 per hour (up from £6.40 — an 18% increase)
- Apprentice rate: £7.55 per hour (up from £6.40 — applies to apprentices under 19, or 19+ in the first year of their apprenticeship)
The significant increases for younger workers and apprentices reflect the government's stated aim of closing the gap between youth rates and the adult rate, with a view to eventually having a single adult rate apply from age 18.
Who Is Entitled to Minimum Wage?
Almost all workers are entitled to the National Minimum Wage. You qualify if you are a worker or employee (not genuinely self-employed), working in the UK, and above school leaving age (the last Friday of June in the school year you turn 16). There is no qualifying period — you are entitled from your first day of work. Agency workers, casual workers, and workers on zero-hours contracts are all covered.
The main categories of workers who are not entitled to the NMW include: genuinely self-employed people (those running their own business with control over their work and profit/loss risk), volunteers working for charities or not-for-profit organisations, family members working in a family business where they live in the family home, and some student workers on approved sandwich placements.
Common Ways Employers Underpay the Minimum Wage
HMRC investigates thousands of minimum wage complaints every year. The most common forms of underpayment include:
- Unpaid travel time — time travelling between work assignments (not the commute to and from home) must be counted as working time for NMW purposes.
- Deductions reducing pay below the minimum — deductions for uniforms, tools, or accommodation that bring take-home pay below the NMW are unlawful. Only deductions for accommodation are partially permitted within a capped "accommodation offset."
- Unpaid trial shifts — trial shifts, no matter how short, count as working time and must be paid at least the NMW.
- Unpaid training time — mandatory training (whether on or off the employer's premises) must be paid at least the NMW.
- Sleep-in shifts — workers who are required to sleep at their workplace (such as care workers on overnight shifts) may or may not be entitled to the NMW for sleeping time, depending on the circumstances — the law here is complex and subject to case law.
- Tips and service charges — since October 2024, tips cannot be used to top up wages to the NMW level. All tips must be passed to workers in full on top of their NMW-compliant wage.
What to Do If You Are Being Underpaid
If you believe your employer is paying you less than the National Minimum Wage, you have several options:
- Raise it with your employer — in writing, explaining the shortfall. Keep a copy of all correspondence.
- Complain to HMRC — HMRC enforces the NMW and can investigate your employer. Complaints can be made online or by calling the ACAS helpline (0300 123 1100). HMRC can issue notices of underpayment, require employers to repay arrears going back up to six years, and impose financial penalties.
- Bring an Employment Tribunal claim — you can claim unlawful deduction of wages at the Employment Tribunal. You do not need a solicitor and there is no fee. You should first contact ACAS for early conciliation before lodging a claim.
National Living Wage vs Living Wage Foundation Rate
The National Living Wage is a statutory minimum set by the government. It is different from the Living Wage Foundation's "Real Living Wage" — a voluntary rate currently set at £13.85 per hour in London and £12.60 per hour outside London, based on the actual cost of living. Employers who commit to paying the Real Living Wage are accredited by the Living Wage Foundation. Paying the Real Living Wage is entirely voluntary — there is no legal obligation.