Are you paying your staff the correct minimum wage?
Employers must pay every worker at least the rate that applies to them. That means either the National Minimum Wage or the National Living Wage. However, the correct rate is not the same for everyone. Instead, it depends on the worker’s age. In addition, apprentices follow their own set of rules.
The current rates
Since 1 April 2026, the rates have been as follows:
- workers aged 21 and over: £12.71 an hour (National Living Wage)
- workers aged 18 to 20: £10.85 an hour
- workers under 18: £8 an hour
- apprentices: £8 an hour
How the apprentice rate works
The apprentice rate does not apply for the whole apprenticeship. Therefore, employers need to watch the timing carefully. An apprentice qualifies for the apprentice rate if they are under 19. Alternatively, they qualify if they are 19 or over and in their first year.
Once that first year ends, the position changes. From then on, an apprentice aged 19 or over moves onto the rate for their age. For example, take a 21-year-old apprentice in their first year. They are entitled to £8 an hour. However, after completing that first year, they must receive at least £12.71 an hour.
The cost of getting it wrong
Employers who underpay can face serious consequences. HMRC can require all arrears to be repaid to the worker. Furthermore, it can impose penalties of up to 200% of the underpayment, subject to the applicable rules. In the most serious cases, criminal prosecution can follow.
Review your payroll regularly
So, are you paying your staff the correct minimum wage right now? Review your rates regularly to be sure. Pay particular attention when an employee has a birthday. Similarly, check when an apprentice reaches the end of their first year.
Remember that the rates change every 1 April. Consequently, you should update your payroll systems promptly. You can check the current rates at https://www.gov.uk/national-minimum-wage-rates.
Talk to us
Are you paying your staff the correct minimum wage across your whole team? Contact us and we will review your payroll rates with you.
