The National Minimum Wage (NMW) rules are more complex than many employers realise. Even if you're paying your workers the correct hourly rate, HMRC’s enforcement officers could still find your business in breach. These mistakes are financially damaging and can harm your company’s reputation.

Understanding the National Minimum Wage Rules

The NMW regulations set out the minimum hourly pay that employers must provide to nearly all workers in the UK. These rates are updated annually, with the latest changes taking effect from 1 April 2025:

  • £12.21 (aged 21 and over)
  • £10.00 (aged 18 to 20)
  • £7.55 (aged under 18)
  • £7.55 (apprentice rate)

However, compliance isn’t as simple as paying the correct age-related rate per hour. Employers often inadvertently breach the rules due to misunderstandings about what counts as working time or NMW pay.

Employment law specialist Joanne Halford from our Leeds office explains more.