National Minimum Wage Guide UK (Rates, Rights, Underpayment 2026)

Current NMW and NLW Rates 2026

The National Living Wage (NLW) applies to workers aged 23 and over. The National Minimum Wage (NMW) applies to younger workers and apprentices. Rates are reviewed annually by the Low Pay Commission and updated each April. The 2026 rates are: National Living Wage (23+): £12.21 per hour; 21-22 year old rate: £10.80 per hour; 18-20 year old rate: £8.60 per hour; 16-17 year old rate: £6.40 per hour; Apprentice rate: £6.40 per hour (applies to apprentices under 19, or those aged 19+ in their first year of apprenticeship). These rates apply across the whole UK including Scotland, Wales, and Northern Ireland. The accommodation offset rate (maximum an employer can deduct for accommodation) is £9.89 per day in 2026. Always check the latest rates on gov.uk national minimum wage rates.

Who Is Entitled to Minimum Wage

Almost all workers in the UK are entitled to the minimum wage, including: full-time and part-time employees; casual workers; agency workers; zero-hours contract workers; pieceworkers (paid per item completed); home workers; temporary and seasonal staff; and most apprentices. The following are not entitled to the minimum wage: genuinely self-employed people (running their own business); company directors who are not employed under a contract of employment; volunteers and voluntary workers; students on certain work placements (as part of a higher education course); and prisoners. If you are a live-in domestic worker (e.g. a nanny or carer who lives in the employer's home), you are entitled to the minimum wage unless you are a family member living rent-free and treated as part of the family. Apprentices aged 19+ who have completed their first year are entitled to the age-appropriate minimum wage rate.

What Counts as Working Time and Pay

Your minimum wage entitlement is based on each pay reference period (usually a week or month). Working time includes: time when you are required to be at your workplace and available for work; time travelling for work (but not commuting from home); training time during working hours; and time spent on standby if you are required to be at the workplace. It does not include: time spent travelling to and from work; breaks when you are free to leave your workstation; time spent on call away from the workplace (unless you are called in). Deductions that count towards minimum wage include: deductions for tax and National Insurance; pension contributions (if you opted in); and deductions for accommodation (up to the offset rate). Deductions that do not count include: deductions for your own uniform or tools; deductions for meals; deductions for transport to work; and tips or service charges paid through payroll. Tips, gratuities, and service charges cannot be used to top up your pay to minimum wage levels.

Common Underpayment Scenarios

Minimum wage underpayment is more common than you might think. HMRC investigates thousands of cases each year. Common scenarios include: unpaid overtime — if you work extra time, it must be included when calculating your average hourly pay; uniform and kit deductions — if your employer deducts money for uniforms or tools, this may take your pay below minimum wage unless specifically allowed; unpaid travel time — time travelling between client sites counts as working time; salary sacrifice schemes — childcare vouchers, cycle-to-work, and other salary sacrifice arrangements can reduce your pay below the minimum wage if not managed correctly (employers must ensure your cash pay after sacrifice still meets the minimum); apprentice rate misuse — some employers keep apprentices on the apprentice rate beyond the first year of their apprenticeship (after year one, they must be paid the age-appropriate rate). If you are paid a salary rather than hourly, check that your hours do not push your effective hourly rate below the minimum.

How to Report Underpayment to HMRC

HMRC enforces the National Minimum Wage and National Living Wage. If you think you are being underpaid, you can report your employer anonymously. HMRC will investigate and can: issue a Notice of Underpayment requiring the employer to pay arrears plus penalties; issue fines of up to 200% of the underpaid amount (capped at £20,000 per worker); and publicly name the employer. To report: call the HMRC National Minimum Wage helpline on 0300 123 1025 (Monday to Friday, 8am to 6pm) or use the online reporting form on gov.uk. You can report in your own name or anonymously. If you report anonymously, HMRC will still investigate but you will not receive updates on the outcome. If you are dismissed or treated unfavourably for asserting your minimum wage rights, you may have a claim for unfair dismissal or detriment at an Employment Tribunal. Keep records of your hours, payslips, and any communications with your employer about pay. For free employment advice, contact Acas (0300 123 1100) or Citizens Advice.

Tips and Pay for Zero-Hours and Agency Workers

Zero-hours workers are entitled to the minimum wage for every hour worked. Your employer must pay you at least the minimum wage even if you only work a few hours per week or month. They cannot zero your hours in retaliation for asserting your rights. Agency workers are entitled to the minimum wage through the agency that employs you. The agency is responsible for ensuring you are paid correctly. After 12 weeks in the same role, agency workers are entitled to the same basic working and employment conditions as directly hired employees (the Agency Workers Regulations 2010). On tips: since 2024, employers in England, Scotland, and Wales are legally required to pass on all tips, gratuities, and service charges to workers without deductions (including admin fees). Tips cannot be used to make up minimum wage pay. If you work in hospitality or a tipped industry, check that your employer is complying with the Tipping Act 2023/2024. For more on worker rights, see the gov.uk minimum wage page.

FAQs

Is the National Living Wage the same as the Real Living Wage?

No. The National Living Wage (£12.21 for 23+) is a legal minimum set by the government. The Real Living Wage (£12.60 in 2026 for the whole UK, £13.85 in London) is a voluntary higher rate promoted by the Living Wage Foundation. Employers are not legally required to pay the Real Living Wage.

Does the minimum wage apply to overtime?

Yes — your total hours including overtime must be averaged against your total pay to check minimum wage compliance. If your overtime pushes your average hourly rate below the minimum, your employer must top up your pay.

Can my employer deduct my wages for training?

Only if the training is not required for your job and you agreed in writing. If training is a legal or regulatory requirement for your role, your employer cannot deduct the cost if it takes you below minimum wage.

What happens if I'm under 23 and doing the same work as someone over 23?

You are legally entitled to the lower rate for your age group. While some employers choose to pay a single rate for all ages, there is no legal requirement for equal pay on the basis of age for the minimum wage.

Can I check if my employer is paying me correctly?

Yes — use the gov.uk minimum wage calculator to check if your pay meets the legal minimum. You can also r=request a written breakdown from your employer.