Who gets the minimum wage

People classed as ‘workers’ must be at least school leaving age to get the National Minimum Wage. They must be 21 or over to get the National Living Wage. Contracts for payments below the minimum wage are not legally binding. The worker is still entitled to the National Minimum Wage or National Living Wage. Workers are also entitled to the correct minimum wage if they’re: part-time casual labourers, for example someone hired for one day agency workers workers and homeworkers paid by the number of items they make apprentices trainees, workers on probation disabled workers agricultural workers foreign workers seafarers offshore workers non-family members living in the employer’s home who share in the work and leisure activities and are treated as one of the family, for example au pairs Apprentices Apprentices are entitled to the apprentice rate if they’re either: under 19 19 or over and in the first year of their apprenticeship Apprentices over 19 who have completed the first year of their apprenticeship are entitled to the correct minimum wage for their age. Not entitled to the minimum wage The following types of workers are not entitled to the National Minimum Wage or National Living Wage: self-employed people running their own business company directors people who are volunteers or voluntary workers workers on a government employment programme, such as the Work Programme members of the armed forces family members of the employer living in the employer’s home workers younger than school leaving age (usually 16) higher and further education students on work experience or a work placement up to one year people shadowing others at work workers on government pre-apprenticeships schemes people on the following European Union (EU) programmes: Leonardo da Vinci, Erasmus+, Comenius people working on a Jobcentre Plus Work trial for up to 6 weeks share fishermen prisoners people living and working in a religious community Employers who offer internships (sometimes called ‘work placements’ or ‘work experience’) should check if the person is entitled to the minimum wage. Voluntary work You’re classed as doing voluntary work if you can only get certain limited benefits (for example reasonable travel or lunch expenses) and you’re working for a: charity voluntary organisation or associated fundraising body statutory body Contact the Acas helpline to find out if you should be getting the minimum wage.

Employers and the minimum wage

Employers must pay workers the correct minimum wage. You can read guidance on the minimum wage rates and who they apply to . What’s not included in minimum wage calculations Some payments must not be included when the minimum wage is calculated. These are: payments for the employer’s own use or benefit, for example if the employer has paid for travel to work things the worker bought for the job and is not refunded for, such as tools, uniform, safety equipment tips, service charges and cover charges extra pay for working unsocial hours on a shift Find out what counts as working time . What’s included in minimum wage calculations Some payments must be included when the minimum wage is calculated. These are: Income Tax and National Insurance contributions wage advances or loans repayment of wage advances or loans repayment of overpaid wages things the worker paid for that are not needed for the job or paid for voluntarily, such as meals accommodation provided by an employer above the offset rate (£10.66 a day or £74.62 a week) penalty charges for a worker’s misconduct Example John is 27 and works 40 hours a week. He earns £12.50 per hour or £500 a week. He pays £15 a week to rent his uniform and the money’s not refunded. To calculate his minimum wage, John’s employer must deduct the uniform rental from the pay. This means John makes £485 per week (£500 minus £15) which is £12.13 per hour. This is below the minimum wage rate of £12.21. John’s employer will need to pay the arrears back to John. Read the detailed guidance on calculating the minimum wage for more on what counts and does not count towards the minimum wage, eligibility, how to calculate the minimum wage and how it is enforced. Employer checks It’s a criminal offence for employers to not pay someone the National Minimum Wage or National Living Wage, or to fake payment records. Employers who discover they’ve paid a worker below the correct minimum wage must pay any arrears immediately. Use the National Minimum Wage and National Living Wage calculator for employers to check a worker has been paid correctly. HM Revenue and Customs ( HMRC ) officers have the right to carry out checks at any time and ask to see payment records. They can also investigate employers if a worker complains to them. If HMRC finds that an employer has not been paying the correct rates, any arrears have to be paid back immediately. There will also be a fine and offenders might be named by the government. Keeping records It’s the employer’s responsibility to keep records proving that they are paying the minimum wage. These records must be kept for at least 6 years if they: were created on or after 1 April 2021 still had to be kept on 31 March 2021 under the previous rule that records must be kept for 3 years The period records must be kept for starts from the last day of the pay reference period after the one they cover. They do not have to be kept in any particular form, for example they can be paper or computer records. But employers must be able to produce records for an individual pay reference period in a single document. Most employers use their payroll records as proof of: total pay - including pay deductions, allowances and tips total hours worked - including absences and overtime Employers may also need to keep records such as: agreements about working hours, pay and conditions, such as contracts documents that show why a worker is not entitled to the minimum wage Pay reference periods Pay reference periods are usually set by how often someone is paid, for example one week, one month or 10 days. A pay reference period cannot be longer than 31 days. A worker must be paid the minimum wage, on average, for the time worked in the pay reference period.

Worker disputes over minimum wage

Workers who think their pay is below the correct minimum wage rate should talk to their employer first. If this does not solve the problem, they can ask the employer in writing to see their payment records. The worker can take someone with them and make copies of the records. If an employer owes the worker any arrears they have to pay these back. Workers can call the confidential Acas helpline to help them solve a payment dispute. Workers can also make a complaint to HM Revenue and Customs ( HMRC ) about their employer or employment agency or complain on behalf of someone else. If the employer refuses payment If HMRC find that the employer has not paid they will send them a notice for the arrears plus a fine for not paying the minimum wage. HMRC can take them to court on behalf of the worker if the employer still refuses to pay. Employment tribunal Workers can also go directly to the employment tribunal themselves. Workers who have been dismissed because of a minimum wage dispute can also complain to the employment tribunal for unfair dismissal .

The National Minimum Wage and Living Wage

Overview

The minimum wage a worker should get depends on their age and if they’re an apprentice.

The National Minimum Wage is the minimum pay per hour almost all workers are entitled to. The National Living Wage is higher than the National Minimum Wage - workers get it if they’re 21 and over.

It does not matter how small an employer is, they still have to pay the correct minimum wage.

Calculate the minimum wage

Use the minimum wage calculators to check if the correct minimum wage has been paid.

There are separate calculators for workers and employers.

Use the calculator for workers to check if you’re getting the correct minimum wage or if an employer owes you payment from the previous year.

Use the calculator for employers to check if you’re paying the correct minimum wage or if you owe a payment from the previous year.

There is also guidance on working out the minimum wage for different types of work.

Call the Acas helpline for advice about the National Minimum Wage or National Living Wage.

View a printable version of the whole guide

Step 1 Check that you’re taking on someone as an employee
Follow these steps if you want to take on someone with the employment status of ‘employee’ for the first time.
1. Check who counts as an employee
The rules are different if you want to take on someone with another type of employment status, such as agency staff, freelancers, consultants and contractors.
1. Check your responsibilities when you take on someone with a different employment status and contract type
and Check you can afford to take on employees
Step 2 Make your workplace safe and accessible for employees
Step 3 Register as an employer and set up PAYE
You need to register with HMRC so you can pay tax and national insurance for your employees.
Step 4 Check your responsibilities around workplace pensions
1. Understand your pension responsibilities as an employer
Step 5 Get Employers' Liability insurance
1. Find out about Employers' Liability insurance
Step 6 Recruit and employ someone
1. Employ someone

The National Minimum Wage and Living Wage

Overview

Calculate the minimum wage

Step 1 Check that you’re taking on someone as an employee

and Check you can afford to take on employees

Step 2 Make your workplace safe and accessible for employees

Step 3 Register as an employer and set up PAYE

Step 4 Check your responsibilities around workplace pensions

Step 5 Get Employers' Liability insurance

Step 6 Recruit and employ someone

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The National Minimum Wage and Living Wage

Overview

Calculate the minimum wage

Part of Get ready to employ someone for the first time: step by step

Step 1: Check that you’re taking on someone as an employee

and Check you can afford to take on employees

Step 2: Make your workplace safe and accessible for employees

Step 3: Register as an employer and set up PAYE

Step 4: Check your responsibilities around workplace pensions

Step 5: Get Employers' Liability insurance

Step 6: Recruit and employ someone

Is this page useful?

Help us improve GOV.UK

Help us improve GOV.UK

Step 1 Check that you’re taking on someone as an employee

Step 2 Make your workplace safe and accessible for employees

Step 3 Register as an employer and set up PAYE

Step 4 Check your responsibilities around workplace pensions

Step 5 Get Employers' Liability insurance

Step 6 Recruit and employ someone