Updated 19/01/2024 with rates effective from 1st April 2024 plus
Updated 22/02/2025 National Mimimum Wage rates from 1st April 2025
This heading includes Guarantee Pay, the Living Wage, the National Minimum Wage.
Current statutory or similar rates are given. The rate for the previous year is given in brackets. The previous year usually refers to the tax year i.e. from 6th April unless noted otherwise.
Guarantee Pay ~
If there is insufficient work, an individual may be laid off or placed on shorter hours provided the individual’s terms contain a provision for laying of or being placed on shorter working hours. If not, the employer is required to pay the normal full rate of pay. If an employer has his own lay off or shorter hours scheme, it must not be less than the Guarantee Pay scheme.
Amount
Maximum = £38 (£35) per day
Limit of 5 days pay in any 3 month rolling period i.e. maximum of £190.
Conditions for Guarantee Pay
If an individual’s terms permit being laid off but the employer does not pay the individual, a limited entitlement to be paid may arise under the provisions of Guarantee Pay if the following conditions are met:
- Not paid by the employer and laid off for at least one day;
- Willing to carry out alternative work even if not within his/her contract terms;
- Is available for work;
- Has been employed continuously for at least one month;
- The reason for being laid off is not due to industrial action
If you’ are not being paid by the employer, you may be entitled to guarantee pay.
TIP – if an individual is laid off or put on short-time, he/she may apply for redundancy and claim redundancy pay if the change in working hours has lasted either 4 weeks in a row or for 6 weeks in a 13-week period.
Living Wage ~
The Living Wage is a voluntary agreement by an employer to pay a set minimum pay rate to all staff aged 18 or over. The rate is determined from the research and principles used by the Living Wage Foundation.
The Living Wage rates for 2024 were published on 24/10/23 and should be implemented by 1st May 2024. The new and former rates are shown below
London £13.15 per hour (£11.95); Elsewhere £12.00 per hour (£10.90).
Employers who agree to the Living Wage are expected to implement the new rates no later than 1st May 2024.
Note – The Living Wage should be distinguished from the National Minimum Wage set out below. The latter is the statutory minimum wage set by Parliament according to the age of an individual.
National Minimum Wage ~
Changes from April 2024 and from April 2025
From 1st April 2024, the National Minimum Rates rates increased and two major changes came into effect.
i) Those aged 21 and over will be entitled to the highest rate of the National Minimum Wage. Previously the highest hourly rate applied to those aged 23 and over.
Another change is that these rates now apply to live in workers of the employer.
The rates and age bands from 1st April 2024 are shown below.
| From 1st April 2024 | £ per hour |
| 21 years and over (sometimes called the National Living Wage) * | £11.44 |
| 18 to 20 years | £8.60 |
| 16 and 17 years | £6.40 |
| Apprentice Rate | £6.40 |
| From 1st April 2025 | £ per hour |
| 21 years and over (sometimes called the National Living Wage) * | £12.21 |
| 18 to 20 years | £10.00 |
| 16 and 17 years | £7.55 |
| Apprentice Rate – see note below re Apprentices | £7.55 |
* Do not confuse this with the Living Wage rate – see earlier heading above.
TIP – the new rates above do not have to be paid until the start of the individual’s first full pay period that begins in April.
Apprentices ~
Under 19 = £6.40 (£5.28) per hour – this rate also applies to those in the first year of their apprenticeship if aged 19 or older.
Other Apprentices, who have completed the first year of their apprenticeship, should be paid the statutory minimum hourly rate according to their age.
Living Accommodation – Offset ~
£9.99 (£9.10) per day maximum; weekly offset £69.93(£63.70) – the rules vary in some circumstances.
Underpayment of the National Minimum Wage – Fines ~
– A 200% fine is payable of the amount underpaid unless that is paid within 14 days;
– The minimum fine is £100 and the maximum £20,000.
The maximum may be imposed upon an employer for each worker who is underpaid. A director of a company which fails to pay the National Minimum Wage may be banned for up to 15 years.
An organisation/trader may be named and shamed publicly by the Government