National Minimum Wage Explained
The legal minimum hourly pay for workers under 21, and for apprentices. Rates vary by age group and are updated every April.
What is the National Minimum Wage?
The National Minimum Wage (NMW) is the lowest hourly rate an employer can legally pay workers under 21. Workers aged 21 and over receive the higher National Living Wage (£12.21/hr). The NMW is set by the government based on recommendations from the Low Pay Commission.
How it works
Rates for 2025-26:
| Age group | Hourly rate |
|---|---|
| 21 and over (NLW) | £12.21 |
| 18 to 20 | £10.00 |
| Under 18 | £7.55 |
| Apprentice rate | £7.55 |
The apprentice rate applies in the first year of an apprenticeship, or to apprentices under 19 regardless of how long they have been on the programme. After the first year, apprentices aged 19 or over move to the age-appropriate NMW or NLW rate.
Employers who pay below the NMW can be fined up to 200% of the underpayment and named publicly by HMRC.
Real example
Ben is 19 and works 20 hours per week at a restaurant. At £10.00 per hour, he earns £200 per week or £10,400 per year. Because this is below the Personal Allowance of £12,570, Ben pays no Income Tax and no National Insurance.
When Ben turns 21, his hourly rate must increase to £12.21 (the NLW). At the same 20 hours per week, his annual earnings rise to £12,698.40. He would then pay a small amount of Income Tax on £128.40 (the amount above the Personal Allowance).
Who does this affect?
Workers under 21 in any type of employment, plus apprentices in their first year. This is common in retail, hospitality, fast food, and seasonal work. Students working part-time during term time or full-time during holidays are covered by the NMW based on their age.
HMRC source
gov.uk/national-minimum-wage-rates has current and historical minimum wage rates for all age groups.
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