National minimum wage

HM Revenue and Customs (HMRC) set the national minimum wage in the United Kingdom. Thus, UK businesses must pay the minimum wage to their staff as required by law.

Your staff could make complaints with HMRC against you if you are not paying the national minimum wage. You as an employer has the obligation to comply with the minimum wage requirement.

For this reason, every person working for your business is entitled to be paid the minimum wage rate per hour. Your staff must be at least the school leaving age to get paid that minimum wage rate.

Broadly, a person working for a business include:

  • Your employees.
  • agency staff.
  • piece workers.
  • employees with disabilities.
  • staff paid by commission.
  • Directors who are employed by your business to carry out their duties under contract of employment.

UK minimum wage rates

Generally, the minimum wage rates changes every April. HMRC will announce the new national wage rate and update this information on the GOV.UK website. You as the employer is responsible to get the updated national minimum wage rates from HMRC. Subsequently, update your payroll system accordingly.

On one hand, your staff minimum wage rate per hour is calculated depending on your age.

  • Aged 25 and above.
  • Aged 21-24.
  • 18-20 of age.
  • Under 18.
  • Apprentice aged 19 and above.

You may get the national minimum wage rates from gov.uk webiste.

Lastly, you must give a payslip to your staff each time you pay them.

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