The National Minimum Wage Act 1998 requires employers to pay a qualifying worker at least the national minimum wage for each pay reference period, and it applies to work in the United Kingdom under section 1(2). This guide explains the hourly rates in force from April 2026, who qualifies, what counts as working time and pay, and what the Act says when a worker has been underpaid. It is general information, not advice on a particular pay dispute.
The hourly rates from April 2026
GOV.UK says the rates change on 1 April every year and gives the April 2026 rates as £12.71 an hour for workers aged 21 and over (the National Living Wage), £10.85 for those aged 18 to 20, and £8.00 for those under 18 and for apprentices. GOV.UK says a worker must be at least school leaving age to get the National Minimum Wage and aged 21 to get the National Living Wage. Apprentices get the apprentice rate if they are under 19, or 19 or over and in the first year of the apprenticeship; after that, they are entitled to the rate for their age.
Who qualifies
Section 1(2) says a person qualifies if they are a worker, work or ordinarily work in the United Kingdom under the contract and have ceased to be of compulsory school age. GOV.UK lists part-time workers, casual labourers, agency workers, homeworkers paid by the item, apprentices, trainees, workers on probation and disabled workers among those entitled. It says a contract for pay below the minimum wage is not legally binding, and the worker remains entitled to the correct rate. Employment status is explained in the guide to employee, worker or self-employed status.
GOV.UK lists those who are not entitled, including self-employed people running their own business, company directors, volunteers, members of the armed forces, family members of the employer who live in the employer’s home, and workers below school leaving age.
What working time counts
GOV.UK explains that the minimum wage is worked out as an hourly rate even where a worker is not paid by the hour, so an equivalent hourly rate must be calculated. Working time includes time at work and required to be working, standby time near the workplace, time not working because of a machine breakdown while kept at the workplace, time waiting to collect goods or start a job, time travelling for work between assignments, and training or travel to training. It does not include travelling between home and work, rest breaks, holidays, sick leave, maternity leave or industrial action.
What counts as pay
For time work, GOV.UK says average hourly pay must be at least the minimum wage over the period each pay packet covers, so a worker paid monthly is tested over one month. Employer-provided accommodation can be taken into account, and GOV.UK says no other company benefit, such as food, a car or childcare vouchers, counts towards the minimum wage. From April 2026 the accommodation offset is £11.10 a day or £77.70 a week. If the employer charges more than the offset, the excess reduces pay counted towards the minimum wage, and if accommodation is free the offset is added to pay.
When a worker has been underpaid
Section 17 says a qualifying worker paid below the minimum wage for a pay reference period is taken to be entitled under the contract to additional remuneration for that period. It is the higher of two amounts: the shortfall between what was paid and what would have been paid at the rate then in force, and an amount worked out by a formula that updates the shortfall by the current rate. In plain terms, arrears can be calculated at today’s rate where that is higher. GOV.UK points to the minimum wage calculator for workers, which it says can check whether an employer owes payment from the previous year.
Section 28 reverses the burden of proof on some points. In civil proceedings it is presumed that an individual qualifies for the minimum wage unless the contrary is established, and, in a claim for the section 17 amount, it is presumed that the worker was paid below the minimum wage unless the contrary is established. A worker can also complain to an employment tribunal if the employer fails to produce pay records on request, and section 11 provides an award of 80 times the hourly minimum wage where the complaint succeeds. A complaint under section 11 has a three-month time limit, which is explained in the guide to Acas early conciliation and tribunal time limits. A different route for pay taken away without authority is covered in the guide to unauthorised deductions from wages.
FAQs
Does the National Living Wage apply to a 19-year-old?
No. GOV.UK says the National Living Wage is for workers aged 21 and over; a worker aged 18 to 20 is entitled to the rate for that age band from April 2026, or the apprentice rate where that applies.
Does a company car or free food count towards minimum wage?
GOV.UK says only accommodation can be taken into account, and no other company benefit counts.
Can a contract lawfully set pay below the minimum wage?
No. GOV.UK says contracts for pay below the minimum wage are not legally binding, and the worker remains entitled to the correct rate.
The bottom line
The National Minimum Wage Act 1998 gives qualifying workers in the United Kingdom a right to at least the prescribed hourly rate, which from April 2026 is £12.71 for those aged 21 and over, £10.85 for 18 to 20 and £8.00 for under 18s and apprentices, according to GOV.UK. Working time and accommodation are counted by defined rules, and arrears can be recovered under section 17. This is general information, not legal advice.
Sources
- GOV.UK, “National Minimum Wage and National Living Wage rates”
- GOV.UK, “National Minimum Wage: Who gets the minimum wage”
- GOV.UK, “Minimum wage for different types of work: Overview”
- GOV.UK, “National Minimum Wage: Accommodation rates”
- legislation.gov.uk, “National Minimum Wage Act 1998, section 1: Workers to be paid at least the national minimum wage”
- legislation.gov.uk, “National Minimum Wage Act 1998, section 11: Failure of employer to allow access to records”
- legislation.gov.uk, “National Minimum Wage Act 1998, section 17: Non-compliance: worker entitled to additional remuneration”
- legislation.gov.uk, “National Minimum Wage Act 1998, section 28: Reversal of burden of proof”