Overview
Introduction to this manual on how to calculate the minimum wage.
The national minimum wage is the legal minimum hourly rate of pay for workers over the compulsory school age, generally 16 years of age.
There are different minimum wage rates for workers depending on their age. The top rate (called the National Living Wage) applies to workers aged 21 and over. (Until 1 April 2024 it applied to workers aged 23 and over.) Other rates are known as National Minimum Wage rates. This guidance applies to all workers, regardless of which rate applies to them.
For ease of reference, the remainder of this guidance uses 鈥榤inimum wage鈥� as a collective term to refer to both the National Minimum Wage and the National Living Wage.
The 鈥榬eal living wage鈥� is a voluntary rate proposed by the Living Wage Foundation that has no statutory basis and is not the subject of this guidance.
This is general guidance designed to assist employers in calculating minimum wage entitlement; all references to 鈥榶ou鈥� or 鈥榶our鈥� therefore relate to employers. It may be used by employers, and also by workers, to help gain and check understanding of the minimum wage rules. However, it does not and cannot provide definitive answers to individual queries. It is not intended to be relied upon in any specific context or as a substitute for seeking advice on specific circumstances, as each case may be different.
The Checklist for employers highlights common causes of minimum wage underpayment and includes links to the relevant sections of this guidance. Example scenarios and example calculations (using 2025 to 2026 minimum wage rates and age bands, and using figures rounded to the nearest number for clarity) are also included throughout the guidance to assist employers further.
Anyone, whether worker or employer, who is unsure about any aspect of minimum wage entitlement can contact the Acas Helpline on 0300 123 1100, Monday to Friday 8am to 6pm for free, impartial and confidential advice.
You are legally responsible for paying the correct minimum wage rates to eligible workers. There are 4 rates:
- the National Living Wage rate for workers aged 21 and over (from 1 April 2024, previously 23 and over)
- the 18 to 20 year old rate
- the rate for under 18 year olds over compulsory school age
- the apprentice rate
To view the current minimum wage rates see National Minimum Wage and National Living Wage rates.
When a worker reaches the age of 18 or 21 years they will move on to a new minimum wage rate. You are responsible for holding accurate information about your workers鈥� ages to ensure this happens.
The rates are reviewed each year and any changes are implemented with effect from 1 April. Prior to 2017, the rates were reviewed and/or changed in October.
Any increase to a new minimum wage rate, whether due to the annual increase or a worker moving up to the new age rate, must be paid for the first pay reference period that begins on or after the day of the rate increase.