Hourly minimum compensation

The National Minimum Wage in the United Kingdom sets the legally mandated hourly compensation that employers must pay workers. As of April 2024, the minimum wage for workers aged 21 and over is £12.71 per hour. Different rates apply to younger workers and apprentices: workers aged 18 to 20 must receive at least £8.60 per hour, those under 18 must receive at least £6.40 per hour, and apprentices must receive at least £6.40 per hour regardless of age if they are in their first year or under 19.

The National Minimum Wage is established under the National Minimum Wage Act 1998 and is enforced by the UK government's Department for Business, Energy and Industrial Strategy. The Low Pay Commission advises the government on appropriate rates annually, and statutory increases typically take effect in April each year.

The most recent adjustment came into force on 21 April 2024, reflecting inflation and economic conditions. Employers must ensure all workers receive at least the applicable minimum wage for their age group or apprenticeship status, calculated on an hourly basis.

Payroll teams must verify each employee's age and apprenticeship status to apply the correct rate. Records of hours worked and wages paid should be maintained to demonstrate compliance. The government's Check Your Pay service allows workers to verify they are receiving the correct minimum wage. Non-compliance can result in enforcement action, penalties, and back-pay claims. Employers should review pay scales annually when new rates take effect in April.