Work & Benefits

National Minimum Wage UK 2026: Rates, Entitlements & What to Do If You're Underpaid

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The National Living Wage and National Minimum Wage set the legal floor for pay in the UK. Millions of workers are unaware of their exact entitlements or don't know how to challenge underpayment. Here are all the rates that apply from April 2025 and what to do if you think you're being paid less than you should be.

2025/26 Minimum Wage Rates

The following rates apply from 1 April 2025: National Living Wage (21 and over): £12.21/hour. Age 18–20: £10.00/hour. Age 16–17: £7.55/hour. Apprentice rate: £7.55/hour (applies to apprentices under 19, or 19+ in the first year of apprenticeship). These are gross hourly rates — before tax and National Insurance. Employers cannot pay below these rates to any eligible worker, including part-time and casual workers.
  • •21+: £12.21/hour (National Living Wage)
  • •18–20: £10.00/hour
  • •16–17: £7.55/hour
  • •Apprentice: £7.55/hour (under 19, or first year)
  • •Annual full-time equivalent at NLW: ~£22,880 (based on 36-hour week)

What Counts Toward Minimum Wage

Not all pay elements count toward the minimum wage calculation. Items that DO count: basic pay, performance-related bonuses (not just for exceeding targets), tips paid through payroll. Items that do NOT count: overtime premium (the extra for overtime, not the base rate), tips paid directly in cash (not through payroll), allowances for tools, clothing or travel, pension contributions, benefits in kind. This means an employer cannot use tips or benefits to top up pay to minimum wage level.

Common Minimum Wage Violations

HMRC names and shames employers who underpay. Common violations: deducting uniform or equipment costs that bring pay below minimum wage; not paying for travel between jobs in care work; sleep-in shifts in care work (recent legal rulings are complex — check current guidance); deducting accommodation that exceeds the accommodation offset (£9.99/day from April 2025); unpaid training time that is mandatory for the job. If you're a salaried employee working significantly more than contracted hours, check your effective hourly rate.
What should I do if I think I'm being underpaid?+

First, calculate your effective hourly rate from your payslip. If it's below the legal minimum: (1) raise it with your employer in writing; (2) if unresolved, contact HMRC via gov.uk/minimum-wage-complaint or call the Acas helpline (0300 123 1100); (3) you can also complain to an employment tribunal. HMRC investigates all complaints confidentially.

Can my employer be prosecuted for underpaying minimum wage?+

Yes — HMRC can require employers to repay arrears plus penalties of up to 200% of the underpayment (minimum £100, maximum £20,000 per worker). Serious cases can result in criminal prosecution and public naming.

Minimum Wage and Zero-Hours Contracts

Workers on zero-hours contracts are entitled to the same minimum wage protections as other workers. Employers cannot use unpredictable hours to avoid paying minimum wage. If you're called in for a shift and sent home early, you're generally entitled to pay for at least the hours you were told to work. Since April 2024, workers can request a more predictable contract after 26 weeks — this doesn't guarantee fixed hours but gives the right to make the request.
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