London Daily

Focus on the big picture.
Saturday, Aug 02, 2025

What is the minimum wage and how much is it?

What is the minimum wage and how much is it?

Boris Johnson said in his speech to the Conservative Party conference that he wants to move "towards a high-wage, high-skill, high productivity and low tax economy".

It's fuelled speculation - and media reports - that the national living wage will soon be raised to £9.42.


What is the minimum wage?


The UK national minimum wage sets out the least a worker can be paid per hour by law.

There are two types:

*  the National Living Wage applies to workers over the age of 23
*  the National Minimum Wage applies to workers above school leaving age but under 23

The levels for both - along with the apprentice rate - usually increase every April.

Any employer not paying the minimum wage can be fined by the UK tax authority, HMRC.

If you think you should be getting the minimum wage and aren't, you can complain via the HMRC website. You can also get advice from the Acas website or by calling its helpline on 0300 123 1100.


How much is the minimum wage?

*  National Living Wage for over-23s: £8.91 an hour

*  National Minimum Wage for those aged 21-22: £8.36

*  National Minimum Wage for 18 to 20-year-olds: £6.56

*  National Minimum Wage for under-18s: £4.62

*  The Apprentice rate: From £4.30

The apprentice rate applies to people aged under 19, or people over 19 but in the first year of their apprenticeship.

If apprentices are older than 19 and have finished the first year of their apprenticeship, they are entitled to the relevant minimum wage for their age group.

The minimum wage is the same across all parts of the UK, in England, Scotland, Wales and Northern Ireland


Who sets the minimum wage?


The rates are decided each year by government and based on the recommendations of independent advisory group called the Low Pay Commission.

It bases its recommendations on the state of the economy, and considers how many people are in work, what's happening to everyone's earnings and how much they are having to pay for essentials such as food and housing.

The Commission usually publishes its recommendations in November to take effect in the following April.


Who benefits from the minimum wage?


People must be of at least school-leaving age to be eligible for the minimum wage, and must be employed.

Workers can be part-time, casual, agency workers, piecemeal workers, apprentices, trainees, workers on probation, disabled workers, agricultural workers, foreign workers, seafarers or offshore workers, according to government guidance.


People who don't qualify include the self-employed, company directors, volunteers, members of the armed forces, prisoners and people living and working in a religious community.

People with disabilities or those in long-term unemployment who take part in a government work programme are paid fixed amounts at different stages of the programme, which amounts to less than the minimum wage.

Work done by prisoners is paid at a minimum of £4 a week, while students on work placements of less than a year as a required part of their studies are not entitled to be paid anything.


When was the minimum wage introduced?


The law to introduce the minimum wage was passed in 1998 by the Labour government and it came into force the following year.

It started at £3.60 for those 22 and older, and £3.00 for 18-21 year olds.

Before the minimum wage was introduced, the lowest-paid people consistently saw the slowest growth in their wages.

The introduction of the minimum wage reversed this trend, according to the Low Pay Commission.


Did the minimum wage cost jobs?


Before the minimum wage was introduced, there was concern that it would cost jobs, because employers would compensate for their higher wage bill by hiring fewer people.

But this didn't turn out to be the case.

There's no evidence of an overall loss of jobs linked to the minimum wage, and only weak evidence of negative impacts on some groups of workers.


What is the 'Real Living Wage'?


The voluntary "Real Living Wage" is set by the Living Wage Foundation charity.

It says the "real living wage" is £10.85 an hour in London and £9.50 elsewhere, but only a small minority of employers have signed up to pay it.

Newsletter

Related Articles

0:00
0:00
Close
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
×