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The term ‘minimum wage in the UK’ generally refers to the legally mandated minimum amount that employers must pay their workers per hour. This is designed to ensure a basic standard of living for employees and is set and reviewed by the government every April, usually based on recommendations from the Low Pay Commission. No matter their size, employers are required by law to pay the National Minimum Wage. The government has released updated guidance on how to determine the minimum wage as well as information on how to make sure you are being paid at least the minimum amount. This blog will explain what it is and how to check if you’re getting paid at least the national minimum wage in the UK.
The UK Minimum Wage System And Wage Rates
The minimum wage in the UK guarantees fair compensation for workers, serving as a foundation for calculating monthly labour salaries. Monthly earnings are influenced by the number of working hours, making it crucial to understand the different wage structures and their applicability based on age.
Types of UK Minimum Wages:
- National Living Wage (NLW): The NLW is applicable to individuals aged 23 and above, ensuring a decent hourly wage for experienced workers. It undergoes an annual increase in April or October, providing better financial security.
- National Minimum Wage (NMW): Workers below the age of 23 but above the school-leaving age fall under the NMW category. Like the NLW, NMW rates also experience annual adjustments to keep up with economic changes.
What Is The Minimum Wage In The UK 2024?
The Low Pay Commission (LPC) is an independent public body that advises the Government on the rates of the National Minimum Wage (NMW), including the National Living Wage (NLW). The National Living Wage and the National Minimum Wage rates effective from 1 April 2024 are shown below.
| Age group | NMW Rate | Annual Increase | Annual Increase Percentage |
| National Living Wage (21 and over) | £11.44 | £1.02 | 9.8% |
| 18-20 Year Old Rate | £ 8.60 | £ 1.11 | 14.8% |
| 16-17 Year Old Rate | £ 6.40 | £ 1.12 | 21.2% |
| Apprentice Rate | £ 6.40 | £ 1.12 | 21.2% |
| Accommodation Offset | £ 9.99 | £ 0.89 | 9.8% |
Who Is Entitled To The UK Minimum Wage?
The amount one can earn in the United Kingdom depends on the type of work one is opting for, the UK working hours, and it will also vary with the age and years of experience of a person. The minimum wage in the UK is determined by the number of hours they spend working.
You’re entitled to be paid the national minimum salary in the UK if:
- You’re an employee – this means you work for someone else and receive a regular wage or salary from them, rather than being self-employed (for example, as a freelancer or consultant).
- Your employment is “commercial”—that is, it’s not domestic service in your own home or voluntary work for charity. The exception is where there’s a family relationship between you and your employer; in these circumstances, they don’t have to pay the minimum wage.
Who Is Not Eligible For National Minimum Wage In The UK?
As far as you are working under someone, you are eligible for an NMW. However, if you are owning a business or are a consultant, its going to be vice-versa, i.e, you’ll have to pay the NMW to your employees if any. The only types of work that are not covered are those who are:
- Self-employed (by choice)
- a volunteer (by choice)
- a company director
- in the armed forces
- doing work experience as part of a course
- work shadowing
- under school leaving age
When Is The National Minimum Wage In The UK For Students Paid?
Employees or workers may be entitled to a higher minimum wage rate in certain situations, such as:
- When the government increases the rates, typically in April each year.
- When an employee or worker turns 18 or 21.
- When an apprentice turns 19 or completes the first year of their current apprenticeship.
The new, higher rate will apply from the next pay reference period after the change. This means that there may be a delay before the pay increase takes effect.
Calculating The National Minimum Salary UK
When determining your minimum wage, it is important to make sure you are compensated at least the legal minimum for all hours that qualify. This is true whether you are paid a monthly wage or by the hour.
Employers must tally up all hours that an employee is entitled to be paid for each payment period, divide that number by the total amount of compensation, and then determine if the employee is being paid at least the minimum wage. The employee’s pay must be raised if this sum is less than or larger than the necessary national minimum wage for that employee.
You can even check if you have been given your NMW for the year on National Minimum Wage and National Living Wage calculator on GOV.UK.
What Does Not Count In Your National Minimum Wage In The UK?
Certain components of your pay are not considered when calculating the minimum wage. These excluded parts include:
- Tips and gratuities
- Premium payments, such as additional pay for working on bank holidays or overtime
- Loans from your employer
- Pay advances
Minimum Wage Deduction Criteria
There are a few things that can and can not be deducted from the minimum wage in the UK. Go through the table below and understand what all deductions you can expect.
| What Can Be Ducted From Minimum Wage In The UK | What Can’t Be Deducted From Minimum Wage In The UK |
| Tax and national insurance | Tools |
| Paying back an advance or overpayment | Uniform |
| Pension Contributions | Travel Costs (except to and from work) |
| Trade union fees | Costs for mandatory training courses |
| Charge for accommodation provided by the employer | – |
Penalties For Non-Compliance
The National Minimum Wage and the National Living Wage in the UK are enforced by Her Majesty’s Revenue and Customs (HMRC). By sending out a notice of underpayment, they can enforce nonpayment. With a minimum penalty of £100 and a maximum penalty of £20,000, this will determine the arrears of pay that must be paid, as well as the penalty, which is set at 100% of the total underpayment of the national minimum pay in the UK.
If you think your employer is not paying you at least the national minimum wage, you can contact the Advisory, Conciliation, and Arbitration Service (ACAS) to get help and advice on what action to take. You can also contact your local authority’s trading standards department. Your local authority may be able to act against your employer for not paying the minimum wage.
Conclusion
The minimum wage in the UK is a legal requirement that employers must pay employees who are over 18. It’s important to know your rights, as well as your employer’s responsibilities regarding paying you what you’re owed. Depending on their age and whether they are an apprentice or not, a working individual in the United Kingdom should get the UK minimum wage per hour. One can also call the ACAS helpline for discreet legal assistance in the event of any salary disparity.
FAQs
1. How long is a working day in the UK?
The Working Time Regulations of 1998 govern working hours in the UK. These are restricted to an average of 48 hours per week and an average of 8 hours each working day. Additionally, they grant employees and workers the right to paid time off and designated rest periods.
2. How many days off do UK workers get?
Most workers who work a 5-day week must receive at least 28 days‘ paid annual leave a year. This is the equivalent of 5.6 weeks of holiday.
3. What is a good salary in the UK?
The average UK wage in 2021 was £38,131 for a full-time position and £13,549 for a part-time position, according to the ONS. This is a modest decline from the average UK pay in 2020 when the full-time average salary was £38,552 and the part-time average was £13,819.
4. How much salary does one get per hour in the UK?
As of 2024, the per hour salary of an employee at UK is £11.44.
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