2025 National Living/Minimum Wage – ensure you’re compliant

The National Living/Minimum Wage is a statutory requirement for a minimum hourly wage to be paid to workers in the United Kingdom.  

From April 2025, the National Living/Minimum Wage rates are as follows:

• The rate for workers aged 21 and over will increase from £11.44 to £12.21
• The rate for 18-20 years olds will increase from £8.40 to £10.00
• The rate for 16-17 years olds will increase from £6.40 to £7.55
• The apprentice rate (for apprentices aged under 19 or in their first year of apprenticeship) will increase from £6.40 to £7.55 

Failure to correctly meet and operate the new rates isn't an option. If identified by HMRC, your organisation could be issued severe penalties and be named and shamed on HMRC’s website. This applies to businesses with arrears of more than £500 in National Living/Minimum Wage payments to their workforce. 

For businesses operating  tronc schemes, allocations from tronc can't count towards the National Living/Minimum Wage. 

Finally, if you require your staff member (the worker) to purchase specific items, such as overalls, then any deductions made from employee pay or payments made to you (the employer) in respect of those items, will also need to be considered for National Living/Minimum Wage purposes, as relayed by Mark Taylor here.