London Daily

Focus on the big picture.
Sunday, Aug 02, 2026

Uber to pay drivers a minimum wage, holiday pay and pensions

Uber to pay drivers a minimum wage, holiday pay and pensions

Uber says it will give its UK drivers a guaranteed minimum wage, holiday pay and pensions.

The ride-hailing app giant said drivers would earn at least the UK's National Living Wage, paid to the over 25s, of £8.72 an hour.

It comes one month after the US firm lost a legal battle in the UK, begun in 2016, over drivers' status.

Uber told the BBC it did not expect the change in drivers' conditions to mean higher fares.

In a hearing at the UK Supreme Court last month, Uber had argued it was a third-party booking agent, and its drivers were self employed.

But the court ruled its drivers were workers, a category that means they are entitled to minimum legal, holiday and pension rights.

The company is being challenged by its drivers in multiple countries over whether they should be classed as workers or self-employed.

Workers' rights


Uber said the changes to its UK drivers' pay would come in almost instantly, from Wednesday, and form an earnings floor, not an earnings ceiling.

The company, which says it has 70,000 drivers in the UK, said the new rates would come on top of free insurance to cover sickness, injury and maternity and paternity payments which have been in place for all drivers since 2018.

Uber says payment will kick in at:

* At least the minimum wage for over 25s, after accepting a trip request and after expenses.

* All drivers will be paid holiday time based on 12.07% of their earnings, paid out on a fortnightly basis.

* Drivers will automatically be enrolled into a pension plan with contributions from Uber alongside driver contributions, setting drivers up over the long term.

* Continued free insurance in case of sickness or injury as well as parental payments, which have been in place for all drivers since 2018.

* All drivers will retain the freedom to choose if, when and where they drive.

Former Uber drivers James Farrar and Yaseen Aslam spearheaded a battle that began six years ago to grant Uber drivers worker status

Jamie Heywood, regional general manager for Northern Europe at Uber, said: "Uber is just one part of a larger private-hire industry, so we hope that all other operators will join us in improving the quality of work for these important workers who are an essential part of our everyday lives."

Uber pointed out in its statement announcing the changes that a worker is a classification that is unique under UK employment law. Workers are not full-blown employees but are entitled to the minimum wage, holiday pay and a pension.

The company said the recent UK Supreme Court ruling had provided a clearer path forward as to a model that gives drivers the rights of worker status - while continuing to let them work flexibly.

Criticism


In a long-running legal battle, Uber had finally appealed to the court after losing three earlier rounds. The Supreme Court ruled that Uber had to consider its drivers as "workers" from the time they logged onto the app, until they logged off.

This was a key point because Uber drivers typically spend time waiting for people to book rides on the app, for which they don't get paid.

Previously, the firm had said that if drivers were found to be workers, then it would only count the time during journeys when a passenger is in the car.

James Farrar and Yaseen Aslam, the two former drivers who sued Uber over worker status, said on Monday they welcomed the changes but the company was still "short changing" drivers.

They said: "We observe that they have arrived to the table with this offer a day late and a dollar short, literally.

"The Supreme Court ruled that drivers are to be recognised as workers with entitlements to the minimum wage and holiday pay to accrue on working time from log-on to log-off, whereas Uber is committing only to these entitlements to accrue from time of trip acceptance to drop off."

Trading impact


They said this meant Uber drivers will be "still short-changed to the tune of 40-50%. Also, it is not acceptable for Uber to unilaterally decide the driver expense base in calculating minimum wage. This must be subject to collective agreement".

Employment experts said the ramifications of the court ruling and Uber's changes would be felt across the gig economy.

Mary Walker, partner and employment lawyer at law firm Gordons, said: "The resulting ability for the Uber drivers to claim back pay for minimum wage and unpaid holiday pay will have many gig businesses reviewing their practices and the associated risks as a matter of urgency."

She believes the additional costs facing the gig economy means "some businesses will simply be unable to continue trading". Other firms will be able to restructure, but perhaps with fewer workers, Ms Walker added.

Newsletter

Related Articles

0:00
0:00
Close
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Sainsbury Agrees to Sell Argos in £120 Million Deal to Private Consortium
High Court Clears Way for Construction of Chinese Embassy at Royal Mint Court
UK Fuel Prices Climb to Multi-Month Highs as Strait of Hormuz Tensions Disrupt Oil Supplies
Severe Summer Drought and Record Heat Put UK Harvests at Risk
Prime Minister Andy Burnham Faces Labour Backbench Opposition Over Potential Support for New North Sea Oil and Gas Drilling
Bank of England Warns Inflation Will Stay Above 3% as Middle East Energy Shock Prolongs Cost-of-Living Pressures
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Charities Allege French Police Used Tear Gas Against Channel Migrants
Norwegian Teenager Convicted Over Iran-Linked Murder Plot in Britain
Christian Organisations File Charity Complaints Against Amnesty International UK
Ofgem Tightens Grid Connection Rules for New Data Centres
FTSE 100 Reaches Record High Despite Global Technology Sell-Off
Millions of UK Households Urged to Check Eligibility for Winter Energy Discount
Labour Restores Parliamentary Whips to Diane Abbott and Joani Reid
UK Supreme Court to Hear Challenge Over Palestine Action Ban
UK Commits More Than £8.4 Billion to Dreadnought Nuclear Submarine Programme
England Declares Severe Drought as Wildfire Burns Near Sizewell Nuclear Site
Bank of England Holds Interest Rates at 3.75% as Middle East Tensions Fuel Inflation Risks
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
UK Business Confidence Climbs to Four-Month High
Greater Manchester Gains Expanded Powers Under Regional Funding Reforms
UK Supreme Court to Hear Appeal Over Palestine Action Terror Ban
Shell's Quarterly Profit Doubles to Nearly $10 Billion on Higher Energy Prices
UK Government Removes VAT From Household Electricity Bills
Exceptional Drought Grips Half of England as Wildfire Threatens Sizewell
Bank of England Holds Interest Rates at 3.75% as Inflation Risks Persist
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
×