Hourly minimum compensation

The United Kingdom's hourly minimum compensation rules establish legally mandated wage floors that vary by age and employment status. As of April 2024, the National Living Wage for workers aged 21 and over stands at £11.44 per hour, while the National Minimum Wage for workers aged 18 to 20 is £8.60 per hour. Young workers aged under 18 receive £6.40 per hour, and apprentices aged under 19 or in their first year of apprenticeship earn £6.40 per hour. These rates apply to all forms of remuneration including bonuses, tips, and allowances that form part of wages.

The rules are governed by the National Minimum Wage Act 1998 and the Employment Rights Act 1996, with enforcement carried out by Her Majesty's Revenue and Customs (HMRC) and the Insolvency Service. The rates are reviewed annually and typically take effect in April each year. The most recent adjustment occurred on 1 April 2024, reflecting changes to the cost of living and economic conditions.

Employers must ensure all workers receive at least the applicable minimum wage for their age group and status. Payroll teams should verify worker classifications accurately, as misclassification can result in significant penalties. Records of hours worked and wages paid must be maintained for at least three years. Non-compliance can trigger enforcement action, including back pay claims, fines up to £20,000 per worker, and potential criminal prosecution. Employers should regularly review the Check Your Pay campaign website and HMRC guidance to remain current with rate changes and compliance obligations.