How much are minimum wage rates worth?
- Published
Wages rose for three and a half million low-paid workers on 1 April, when the new rates for the National Living Wage and National Minimum Wage took effect.
The pay rates are set by the government every year on the advice of an independent group, the Low Pay Commission, and apply across the whole of the UK.
A higher hourly rate called the Real Living Wage, paid voluntarily by some UK firms to almost half a million people went up on 22 October.
What is the National Living wage, and how much is it worth?
Since April 2024, the National Living Wage has applied to employees aged 21 and over. Previously, you had to be 23.
On 1 April 2025, the National Living Wage went up to £12.21 an hour, an increase of 6.7% from £11.44, external.
The government said the increase was worth £1,400 a year for an eligible full-time worker.
What is the National Minimum Wage and how much is it worth?
Younger employees - aged between 16 and 20, external - are entitled to receive the National Minimum Wage.
On 1 April, the 18-20-year-old-rate rose to £10 an hour, up 16.3% from £8.60.
The government said the increase was worth £2,500 for an eligible full-time worker.
At the same time, the 16-17-year-old-rate went up to £7.55 an hour, an 18% increase from £6.40.
What is the apprentice rate and how much is it worth?
There are different rates of pay for apprentices, external depending on your age and what stage of your apprenticeship you are in.
Apprentices aged 16 to 18 are entitled to the National Minimum Wage rate for that age group which is £7.55.
Those aged 19 or in the first year of their apprenticeship are paid the same amount.
But those over 19 - or who have already completed their first year - are entitled to the appropriate National Minimum Wage or National Living Wage rate for their age.
Who doesn't qualify for the National Minimum Wage and National Living Wage?
Some workers don't qualify for either the National Minimum Wage or the National Living Wage.
This includes the self-employed, company directors, volunteers, members of the armed forces and prisoners.
People with disabilities or in long-term unemployment who take part in government work programmes are paid fixed amounts at different stages of the scheme.
These are less than the equivalent National Minimum or Living rate.
Do employers have to pay the National Minimum Wage and National Living Wage?
Yes. It is a criminal offence if employers don't pay the correct National Minimum and Living Wages to eligible workers.
The rates apply to staff even if they are not paid by the hour.
If you think you are being paid wrongly, you can complain via the HMRC website, external.
You can also get advice from workplace experts Acas, external.
What happens if employers don't pay the right wage?
Any employer not paying the correct amount can be fined by HMRC.
In October 2025, the government released a list of nearly 500 employers who were fined more than £10m for failing to pay the minimum wage.
It said 42,000 workers at companies including British Gas's parent company Centrica, Euro Garages and Holland & Barrett were repaid more than £6m.
The firms listed were fined up to double the total amount they owed to staff, some for underpayments dating as far back as 2013.
What is the Real Living Wage and how much is it?
The Real Living Wage, external is an unofficial hourly rate of pay which is overseen by the Living Wage Foundation charity.
It is aimed at UK workers aged 18 and over, but is voluntary, and firms can choose whether or not to pay it. The wage increases every October.
According to the charity almost 500,000 employees working for more than 16,000 firms receive the voluntary rate of pay.
From October 2025, it means workers in London earn at least £14.80 an hour - the London Living Wage - up by 95p, an increase of 5.3%.
In the rest of the UK, the rate increased by 85p to £13.45, a 6.7% rise.
The Living Wage Foundation says the rate is worth £2,418 more per year than the legal minimum wage in the UK, and £5,050 more in London.