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National Minimum Wage


National Minimum Wage rates and National Living Wage rates effective from 1 April as applicable:


W Ratourly rate – from 1.10.2010 Current rate – from 1.10.2009

 








 













 












Prepared by: VADVA & PICKERING LTD, Chartered Certified Accountants. E&OE. The above is prepared in good faith without any responsibility on our part. Reference to the full legislation should be obtained in uncertain circumstances.


Rates

rate per hour

1.4.25 - 31.3.26

rate per hour

1.4.24 - 31.3.25

Notes

Rate for workers aged 21 and over (NLW)

£12.21

£11.44

The National Living Wage now applies to all workers aged 21 and over

Rate for workers aged 18-20 inclusive

£10.00

£8.60

Rate for workers aged under 18

£7.55

£6.40

Apprentice rate (aged 16-18 or over 19 and in first year of apprenticeship) - after that paid at rate applicable to age


£7.55

£6.40

The NMW is the BASIC PAY, including bonuses or commission, but excluding overtime or shift work and excludes deductions for expenses linked to the job such as uniforms, transport or agency fees or benefits in kind such as meals, car or fuel benefits,  pension contributions and medical insurance.  Tips are also excluded.


However, employers can deduct accommodation up to £10.66 per day for 2025/26 (£9.99 - 2024/25) and the offset will not apply to students on further or higher education courses. Other rules also apply - link accommodation



EXCEPTIONS - NMW does not apply to the following - not an exhaustive list:

Resources

For more information visit     https://www.gov.uk/national-minimum-wage

National Minimum Wage calculator - https://www.gov.uk/am-i-getting-minimum-wage

National Minmum Wage helpline - 0845 6000 678  (P.S. Reference to the full legislation should be made in uncertain circumstances)

From November 2024, the minimum wage levels set by the Living Wage Foundation for employees aged 18 and over will be £12.60 per hour (Nov 23: £12.00). The London rate will be £13.85 per hour (Nov 23: £13.15). The real Living Wage is based on ‘what it actually costs to live’ and is voluntarily paid by over 15,000 UK employers. The Living Wage rates are announced  each year around the end of October and employers have 6 months to implement them – by 1.5.2025 for Nov 2024 rates.





The effect of the increase in the National Living Wage from £11.44 to £12.21 is set out in the table opposite for those over aged 21 and over. It shows the equivalent annual salary for an employee being paid the National Living Wage at different weekly hours worked, comparing the new rates from 1.4.2025-31.3.2026 with the rates from 1.4.2024-31.3.2025.


Effect of change in salary for worker aged 21 and over from 1.4.2025

No of hours worked by worker

1.4.25-31.3.26

1.4.24-31.3.25

Increase-£

Increase-%

Equivalent annual salary £12.21 per hr

Equivalent annual salary £11.44 per hr

42.5

£26,984

£25,282

£1,702

6.73 %

40

£25,397

£23,795

£1,602

6.73 %

37.5

£23,810

£22,308

£1,502

6.73 %

35

£22,222

£20,821

£1,401

6.73 %