What is the Minimum Wage for my Employee's Age?

Shona
23 hours ago
3 min read

Minimum wage sounds straightforward — until you realise there are multiple rates, age bands, exceptions, and annual updates to keep track of.

Whether you’re hiring your first employee or managing a growing team, paying the correct rate isn’t just good practice… it's a legal requirement.

And with the National Minimum Wage and National Living Wage changing every April, it’s easy for rates to slip through the cracks — especially if you employ apprentices, younger workers, or staff with variable hours.

In this guide, we break down exactly what you need to pay employees based on their age or employment status. No jargon, no complicated maths — just a clear, practical overview to keep your business compliant and your team fairly paid.

What Counts as Minimum Wage? (NMW vs NLW Explained)

When we talk about “minimum wage” in the UK, we’re actually referring to two different—but closely linked—legal pay rates: the National Minimum Wage (NMW) and the National Living Wage (NLW).

National Minimum Wage (NMW)

The NMW is the legal minimum pay rate for most workers under the age threshold for the National Living Wage. It covers:

16–17-year-olds
18–20-year-olds
Apprentices (with some exceptions)

The rate changes every April, and it is a criminal offence to pay below it—accidentally or otherwise.

National Living Wage (NLW)

The NLW is the highest statutory minimum wage band and applies to adults in the workforce.

It was originally designed to give older workers a higher guaranteed standard of pay as they are more likely to have greater financial responsibilities.

From April 2024, any employee aged 21 or older must now be paid the National Living Wage rate.

Why This Matters for Employers

You may now be paying more employees the higher NLW rate
Anyone already aged 21+ must receive the uplift—even if they started on a lower band
Failing to update this can result in back-pay claims and HMRC penalties

Current Rates

Age / Status	Hourly Rate (from 1 April 2025)
21 and over (NLW)	£12.21 (set to increase to £12.71 in Apr 2026)
18–20	£10.00
Under 18	£7.55
Apprentice rate (under 19, or 19+ in first year)	£7.55

Note on apprentices: If a worker is 19 or over and has completed their first year of apprenticeship, they should be paid at the appropriate age‑based rate (e.g. £10.00 or £12.21 depending on age) rather than the apprentice rate.

What to Do as an Employer: Tracking & Compliance Tips

✅ Update your payroll on 1 April every year. The NMW/NLW rates typically change each April, so make sure your next full pay run reflects the new rates.

✅ Check ages and birthdays. For example, when someone turns 21, their pay rate must move to the NLW.

✅ Audit apprentices carefully. Ensure you’re paying the right rate depending on whether they’re in year one or beyond, and depending on their age.

✅ Review contracts when rates change. Especially if you’ve committed to “minimum wage” in contracts without specifying a figure — that figure needs updating.

✅ Communicate changes to staff. Transparency builds trust — let people know when rates rise and how it affects them.

What Counts as “Working Time” for Minimum Wage Calculations

Minimum wage must be paid for all qualifying working time, which includes:

Regular hours worked
Training sessions (if required by the employer)
Travel between sites during the workday
On-call or standby time (if the employee must remain available)
Waiting time during shifts

Tip: Only paid work counts toward minimum wage. Breaks longer than 20 minutes do not count, unless the contract says otherwise.

Common Employer Mistakes

Even experienced employers can slip up. Watch out for:

Paying basic pay only, ignoring regular overtime or bonuses that count as “normal pay.”
Using incorrect age brackets (e.g., still paying 23-year-olds the old rate).
Forgetting apprentices past their first year.
Making deductions that reduce pay below the statutory rate.
Failing to adjust pay when an employee’s age moves them into a higher band.

✅ Quick tip: Regular payroll audits help catch these mistakes before they become costly.

Paying below the statutory minimum is a serious offence. Consequences include:

Back-pay claims — you must pay any arrears owed.
Fines from HMRC — can be substantial.
Naming and shaming — your business may appear on HMRC’s public list.

⚠ Remember: “I didn’t know” is not a defence. Staying compliant protects your business and your employees.

How Lilac HR Can Help You Stay Compliant

Keep a pay rate calendar: mark birthdays and April rate changes.
Audit payroll regularly, especially for variable hours or apprentices.
Clearly record hours worked and payments made
Sign up to the How to HR Toolkit to download template contracts and handbooks to reflect NMW/NLW changes
Contact us for retained support to help you manage compliance effortlessly.