The minimum wage 2025 rates set the legal hourly floor for most workers and apprentices. Your entitlement depends on your age band, whether you qualify for the National Living Wage, and how your pay is calculated across a pay reference period.

Small payroll details like unpaid minutes, deductions, and accommodation charges can push pay below the legal rate even when the headline hourly figure looks fine.

As of 2026, the rates introduced on 1 April 2025 applied for the year running to 31 March 2026, unless a later annual uprating replaced them.

Minimum Wage 2025 UK Rates By Age Band And Apprentice Status

Minimum wage 2025 rates from 1 April 2025 set the legal minimum hourly pay by age band and for apprentices. The top statutory rate is called the National Living Wage and applies from age 21. The National Minimum Wage covers younger workers and specific apprentice rules.

National Minimum Wage 2025 rates by age and status

Category	Statutory rate from 1 April 2025	What decides eligibility
Age 21 or over	£12.21 per hour	National Living Wage band
Age 18 to 20	£10.00 per hour	National Minimum Wage band
Under 18	£7.55 per hour	National Minimum Wage band
Apprentice	£7.55 per hour	Under 19, or 19+ in first year

What is the difference between National Living Wage and National Minimum Wage?

The National Living Wage is the highest statutory minimum rate and applies to workers aged 21 and over. The National Minimum Wage is the statutory minimum for younger workers and apprentices. Both are enforced through HMRC compliance activity and depend on how pay and working time are counted.

Who qualifies for the National Living Wage in 2025?

If you are 21 or over, you are generally in the National Living Wage band for statutory minimum pay purposes. If you are 18 to 20, under 18, or an eligible apprentice, the National Minimum Wage band rules apply.

A common confusion is assuming the national minimum wage 2025 is a single rate for everyone. It is not; the law uses age bands and apprentice status.

When do the 2025 minimum wage rates start and when should you see them in pay?

The annual uprating usually takes effect on 1 April. If your pay period overlaps 1 April, the timing of the uplift can depend on your employer’s payroll cut-off date and pay reference period, but the legal rate must be met for the relevant working time.

What to do if your pay did not rise after 1 April 2025?

Start by checking the pay date and the pay period dates on your payslip. Many issues turn out to be timing and payroll cycles, but you still need to confirm the hourly equivalent meets the legal rate for the pay reference period. A delayed uplift can create a cash-flow squeeze even when it’s later corrected.

If money is tight while payroll puts things right, weigh up the true costs of short-term credit such as Payday loans before you commit.

In practice, payroll checks are fastest when you compare the hours actually worked to the gross pay that counts for minimum wage, rather than relying on the advertised hourly figure.

How to check if you are being paid at least the minimum wage?

Minimum wage compliance is about what you are paid for the working time that counts, after specific deductions, within a pay reference period. That means “£X per hour” on a contract does not always settle it.

Minimum wage 2025 is easiest to check with a simple calculation

A quick way to sense-check it is this:

• Take gross pay that counts for minimum wage.
• Subtract deductions that reduce minimum wage pay.
• Divide by working time that counts, including required extra time.
• Compare the result with your age-band rate for that pay reference period.
• Repeat for any pay period where hours or deductions changed.
• Keep the payslip and rota records used for the calculation.

If the hourly equivalent is below the legal rate for your age band, there may be an underpayment.

Minimum wage 2025 for salaried workers

Salaries can hide underpayments when unpaid extra time creeps in. Convert your salary to an hourly equivalent using the pay reference period hours you actually worked, not just the contracted hours, if you are expected to do more.

If payroll assumes a standard full-time week but your rota regularly runs longer, anchor your calculation to typical full-time hours, how many hours is full time UK.

That single mismatch between assumed hours and actual hours is enough to change the hourly equivalent.

For instance, a salaried shift supervisor is contracted for 40 hours but regularly works 45 due to end-of-day cashing up and handover. Their monthly salary stayed the same after April, and the extra time made their hourly equivalent drop below the 21+ statutory rate.

What counts towards minimum wage pay and what does not?

Not every payment on a payslip helps you meet the legal minimum, and not every deduction is neutral. Tips and many benefits do not count.

What usually counts

• Basic pay for working time
• Certain productivity payments linked to work done
• Some commission arrangements (depending on structure)

What usually does not count

• Tips and gratuities, including many tronc arrangements
• Benefits in kind (company car, meals, vouchers)
• Expense reimbursements
• Most overtime premia above basic pay

Do tips and service charges count towards minimum wage?

Tips and service charges are a frequent source of confusion in hospitality and delivery work. In many setups, they sit outside the minimum wage calculation. If your employer is relying on tips to “top you up” to the legal floor, that is a red flag.

For instance, a front-of-house worker is told their tips “make up the difference” when rota hours increase. Their payslip shows fluctuating tronc amounts, but the basic pay alone falls short of the statutory rate once opening duties are included.

Which deductions can push you below the minimum wage?

Even if your hourly rate is set correctly, deductions can reduce minimum wage pay in a way that creates underpayment.

Deductions that commonly cause minimum wage problems

• Uniforms or mandatory clothing
• Tools or equipment required for the job
• Till shortages or stock losses deducted from wages
• Salary sacrifice that reduces cash pay below the legal floor
• Some training-related charges

As a practical check, if you have to pay it to do the job, it may affect the minimum wage calculation.

Does travel time count as working time for minimum wage?

Travel time can count when it is part of your job, such as travelling between assignments, sites, or clients during the working day. Ordinary commuting from home to a regular workplace typically does not count.

If your role involves moving between locations, keep clear records of start times, end times, and travel segments. Timesheets, job logs, and rota data are often the key documents.

Accommodation offset 2025 and why it matters

Accommodation provided by an employer can be factored into minimum wage calculations using a specific rule called the accommodation offset. This is one of the most technical areas, and it is also one of the most common places where employers accidentally get it wrong.

Accommodation offset rates from April 2025

Accommodation offset	Rate
Daily rate	£10.66
Weekly rate	£74.62

How the accommodation offset works in plain terms?

• If accommodation is provided free, the offset can increase the amount treated as pay up to the limit.
• If accommodation is charged for, only a limited amount can be treated as reducing pay, depending on whether the charge is above or below the offset.

A common pattern is that payroll systems apply the accommodation charge as a simple deduction without doing the offset calculation across the correct pay reference period.

What minimum wage problems show up most often in 2025?

Most underpayments are not dramatic; they are small amounts repeated across many pay periods, often tied to time recording and deductions.

The most common minimum wage error types

• Unpaid minutes before and after shifts (opening, closing, security checks)
• Automatic deductions should not reduce the minimum wage pay
• Rota changes are not reflected in the contracted hours assumptions
• Apprentice status applied for too long after the first year
• Age-band changes are not updated promptly after birthdays
• Training time is treated as “optional” when it is required

What to do if you think you are being paid below the minimum wage?

Treat it as a facts-and-figures issue first: gather the records, check the calculation, then raise it through payroll or HR. Many employers can correct errors through payroll once the cause is identified.

Steps to check and raise a minimum wage underpayment

1. Confirm your age band or apprentice status for the pay period in question.
2. Note the pay reference period dates shown on your payslip or rota system.
3. Total the working time that counts, including the required extra time.
4. Identify pay that counts and deductions that reduce minimum wage pay.
5. Calculate your hourly equivalent for that pay reference period.
6. Raise it with payroll or HR with your calculation and supporting records.
7. Ask for written confirmation of the correction method and timing.
8. Keep a copy of payslips, rotas, and any responses for your records.

Evidence that usually makes resolution quicker

• Payslips and PAYE pay breakdowns
• Rotas, clock-in records, and timesheets
• Employment contract and any apprenticeship agreement
• Screenshots of scheduling apps showing shift edits
• Records of deductions for uniforms, tools, or shortages

How arrears and enforcement usually work in minimum wage cases?

Where an underpayment is found, the typical outcomes include paying arrears for affected pay periods and correcting payroll going forward.

If you also track support alongside earnings, DWP 299 cost of living payment is the type of scheme many people factor into short-term budgeting.

HMRC compliance officers can investigate, and employers may face formal notices and penalties depending on the situation and whether correction happens.

This is general information and not legal advice. If you need individual help, Acas and other official services explain options and processes.

Example: A care worker on split shifts had unpaid travel time between visits. Once the employer adjusted working time records and recalculated the pay reference period, arrears were paid and scheduling was updated to prevent repeats.

Minimum wage and Real Living Wage are not the same thing

The statutory minimum wage is a legal requirement set through government processes and recommended by the Low Pay Commission.

Wage floors often sit alongside longer-term policy shifts that affect planning, including the state pension age increase. The Real Living Wage is a voluntary rate used by some employers and accreditation schemes. It can be higher than the statutory floor and is a separate concept.

Quick comparison of wage terms people mix up

Term	What it is	Who sets it	Is it legally enforceable
National Living Wage	Top statutory minimum rate	Government after recommendations	Yes
National Minimum Wage	Statutory minimum rates by band	Government after recommendations	Yes
Real Living Wage	Voluntary benchmark rate	External living wage bodies	No

What people talk about this online?

Minimum wage from April 2025
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u/CharlieDimmock in
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How Are Small Businesses Preparing for the April 2025 Wage Increases?
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Final summary

If you want to validate minimum wage 2025 compliance quickly, focus on three things: your correct age band or apprentice status, the pay reference period dates, and your hourly equivalent after deductions and working time that count.

If something looks off, document hours, deductions, and pay elements, then raise a clear calculation with payroll or HR so it can be corrected and, where appropriate, arrears processed.

FAQs

What is the minimum wage in 2025?

From 1 April 2025, the statutory minimum depends on age and status. The 21+ rate is £12.21 per hour, the 18–20 rate is £10.00, and the under 18 and apprentice rate is £7.55.

What is the national minimum wage 2025 for 18 year olds?

If you are 18, you fall into the 18–20 band for most workers. From 1 April 2025, that band is £10.00 per hour, unless you are an eligible apprentice on the apprentice rate rules.

What is the apprentice minimum wage in 2025?

From 1 April 2025, the apprentice rate is £7.55 per hour. It generally applies if you are under 19, or if you are 19 or over and in the first year of your apprenticeship.

Do tips count towards minimum wage?

Tips and many service charge arrangements are usually outside the minimum wage calculation. If basic pay plus eligible pay elements do not meet the legal minimum, tips are not meant to be used to fill the gap.

Can my employer pay less during probation?

Probation does not remove minimum wage entitlement. Your minimum rate is still determined by your age band or apprentice status, and your hourly equivalent must meet the legal floor for the relevant pay reference period.

If I am on a salary, how do I check minimum wage?

Convert your salary to an hourly equivalent for the pay reference period using working time that counts. If your actual hours are higher than contracted hours, the hourly equivalent can drop below the statutory rate.

Does travel time count for minimum wage?

Travel between work locations during the day can count as working time. Normal commuting typically does not. If your role involves travel between clients or sites, accurate logs and timesheets are important for the calculation.

What is accommodation offset and why does it matter?

Accommodation offset is a specific rule used when an employer provides accommodation. A set daily or weekly amount can affect the minimum wage calculation, and incorrect handling can create underpayment even when hourly pay looks correct.

How soon should a pay increase appear after 1 April 2025?

It depends on payroll cut-off dates and the pay reference period shown on your payslip. Even if payment timing varies, the legal minimum must be met for the work done in the relevant pay reference period.

Author note

Written by an SEO and workplace-pay researcher who reviews official pay-rate updates, payroll terminology, and common underpayment patterns across sectors. The aim is practical clarity on how minimum wage calculations work in real payslips and rotas, without offering legal advice.