Minimum wage in the UK

The National Minimum Wage (NMW) in the United Kingdom is the lowest amount that an employer can pay to employees who are 23 years old or over. It is set by the government and is reviewed annually.

As of April 2024, the National Living Wage (NLW), which applies to workers aged 21 and over, stands at £11.44 per hour. This rate is also known as the ‘living wage’ and is intended to reflect the cost of living in the UK.

For employees under the age of 21, there are different minimum wage rates:

It’s worth noting that these rates apply to employees who work for more than 35 hours per week, and are paid at least the minimum wage rate for each hour worked. If an employee works less than 35 hours per week, they must be paid a pro-rata amount based on their actual hours worked.

Employers who fail to pay the National Minimum Wage can face penalties, including fines of up to £20,000 per worker affected.

In terms of rotas and HR, it’s essential for employers to ensure that all employees are paid at least the minimum wage rate for each hour worked. This includes checking that employees are not being underpaid due to incorrect pay calculations or deductions from their wages.

AceRota’s automated rotas ensure staff are paid for all worked hours, thereby helping employers comply with minimum wage regulations, as it eliminates underpayment and ensures accurate calculation of pay.