The UK minimum wage is the legal minimum hourly rate employers must pay workers, set by the government and updated every April.
What is the minimum wage in the UK?
The UK minimum wage is the lowest hourly rate an employer can legally pay a worker. It applies to almost all workers regardless of industry, contract type, or payment method. The rate varies by age and is reviewed annually by the Low Pay Commission, with new rates taking effect on 1 April each year.
For workers aged 21 and over, it is called the National Living Wage (NLW). For younger workers and apprentices, lower rates apply under the National Minimum Wage (NMW).
UK minimum wage rates from April 2026
The following rates apply from 1 April 2026:
| Worker category | Hourly rate |
|---|---|
| Aged 21 and over (National Living Wage) | £12.71 |
| Aged 18 to 20 | £10.85 |
| Aged 16 to 17 | £8.00 |
| Apprentice | £8.00 |
Apprentice rate note: The £8.00 rate applies to apprentices under 19, or those aged 19 and over who are in the first year of their apprenticeship. After the first year, apprentices aged 19 and over are entitled to the standard rate for their age group.
Previous rates (April 2025 – March 2026): NLW £12.21 · 18–20 £10.00 · 16–17 £7.55 · Apprentice £7.55
What the minimum wage means for employers
As an employer, you must pay every eligible worker at least the correct rate for their age group from the first pay period that covers work done on or after 1 April. This applies regardless of how you pay (hourly, weekly, monthly, or by piecework) as long as the average hourly rate meets or exceeds the minimum.
Key obligations:
- Apply the correct age-banded rate for every worker
- Update payroll before or on 1 April each year, not at the next pay review
- Keep accurate records of hours worked and payments made
- Ensure deductions (for uniforms, tools, accommodation) do not bring the effective hourly rate below the minimum
- Pay apprentices the correct rate based on their age and year of apprenticeship
Non-compliance can result in fines of up to 200% of unpaid wages, public naming by HMRC, and potential criminal prosecution for serious cases.
Who is exempt? Genuinely self-employed individuals, volunteers, members of the armed forces, and some government scheme participants are not covered by the NMW. If you're unsure whether a worker qualifies as employed or self-employed, seek advice; misclassification is one of the most common compliance failures.
How minimum wage increases affect shift-based businesses
For businesses that run on shifts (hospitality, retail, care, logistics) a minimum wage increase isn't just a payroll update. It's a cost increase that compounds across every rota you publish.
A few things to work through each April:
-
Labour cost impact. Calculate the increase per employee at each age band, multiplied by contracted or average hours. For a team of 20 where half earn the NLW, moving from £12.21 to £12.71 adds roughly £1,040 per year per full-time employee at 40 hours, before you account for workers moving into a new age band.
-
Wage compression. When the minimum rises, workers earning just above the old floor can end up level with newer or less experienced colleagues. Many employers adjust these rates upward too, which amplifies the cost impact beyond the headline figure.
-
Scheduling decisions. Labour cost targets set before April need revisiting. If you track labour cost as a percentage of revenue, the same rota will cost more from April 1. Shift patterns that were within budget in March may push you over target in April.
-
Apprentice and young worker rates. If you employ workers across multiple age bands, a single rota can carry several different minimum rates. Scheduling software that stores contract and wage data makes it straightforward to model the cost of a published rota before it goes live rather than finding out at month-end.
Is there a higher minimum wage for night shifts?
No. There is no separate minimum wage rate for night shifts in the UK. The National Living Wage and National Minimum Wage apply equally to all hours worked, regardless of whether they fall during the day, at night, or at weekends.
Some employers choose to pay a higher rate for unsocial hours as a recruitment or retention tool (this is common in hospitality and logistics) but it is not a legal requirement. Any additional pay for night work is set by the employer, not the government.
Working Time Regulations do apply to night workers: the average working time for night workers should not exceed 8 hours in any 24-hour period, and night workers are entitled to a free health assessment.
Is minimum wage income taxed?
Yes. Minimum wage earnings are subject to Income Tax and National Insurance in the same way as any other pay. As an employer, you deduct both through PAYE.
-
Income Tax: Employees have a personal allowance (£12,570 for the 2025/26 tax year) below which no income tax is due. Workers on minimum wage who work part-time may fall below this threshold. Full-time workers on the NLW will exceed it. You apply the employee's tax code and deduct accordingly through PAYE.
-
National Insurance: Employee NICs apply once earnings exceed the weekly threshold (£242 per week for 2024/25). Many minimum wage workers will exceed this, so you will deduct employee NICs and pay employer NICs on earnings above the secondary threshold.
