National wage regulations
National Minimum Wage
The National Minimum Wage Regulations sets out the minimum amount of pay a worker is entitled to per hour. This wage is for anyone under the age of 21 years. There is also a specific rate for apprenticeA person who has agreed to work for a skilled employer for a period of time to learn from them. This is often done at a lower wage.
It is a legal requirement for employers to pay workers the national minimum wageThe lowest wage permitted by law..
Her Majesty’s Revenue and Customs (HMRC)The government department responsible for assessing and collecting taxes have the authority to take employers to court if they are not paying workers the national minimum wage.
National Living Wage
The National Living Wage was introduced in 2015. It is specifically for workers aged 21 years and over and it is the lowest wage that can legally be paid to these workers.
The rates of the National Mimium Wage and National Living Wage go up annually, usually on the 1st April. As of April 2025, the rates of the National Living Wage and National Minimum Wage are as follows:
| Age | National Minimum Wage entitlement |
| 21 and over | £12.21 (National Living Wage) |
| 18 to 20 | £10.00 |
| 16 to 17 | £7.55 |
| Apprentice | £7.55 |
| Age | 21 and over |
|---|---|
| National Minimum Wage entitlement | £12.21 (National Living Wage) |
| Age | 18 to 20 |
|---|---|
| National Minimum Wage entitlement | £10.00 |
| Age | 16 to 17 |
|---|---|
| National Minimum Wage entitlement | £7.55 |
| Age | Apprentice |
|---|---|
| National Minimum Wage entitlement | £7.55 |
Impact of National Minimum Wage and National Living Wage Regulations
Increased costs – an increase in National Minimum Wage will increase the costs for an organisation which may result in lower profits.
Reduction in staff – an organisation may have to reduce the number of people they employee or reduce staff hours to be able to afford a rise in wages.
Backdated payment – if an organisation is found to be paying less than the National Minimum Wage, they will be required to make a backdated payment to employees.
