Minimum Wages in the UK: Everything You Need to Know

Moving to a new country opens up many new opportunities—but there’s a lot to navigate. If you’re thinking about working in the UK for the first time, knowing your entitlement when it comes to wages will be key to ensuring you receive a fair income. Labor laws are strict in the UK, and they guarantee minimum standards for pay and conditions.

Here’s our Remitly guide to the minimum wage in the UK. For comparison purposes, at the time of writing, GBP £1 is equivalent to USD $1.27.

Table of contents

The National Living Wage (NLW) and the National Minimum Wage (NMW)

The NLW and NMW are wage rates set by the UK government for all UK workers. They’re usually adjusted each year, and all employers are obliged to pay their employees at least the minimum wage. The rates are hourly, so whether your contract is part-time or you’re a full-time worker, your eligibility doesn’t change.

The Low Pay Commission (LPC) makes recommendations to the government each year, which the government uses to set the rates for the following year.

The new rates are typically announced in November, and they come into effect on April 1 of the following year.

These rates apply across the whole of the UK (England, Scotland, Wales, and Northern Ireland). Whether the NLW or NMW applies to you will depend on your age group. Let’s break it down.

The current National Living Wage in the UK

The NLW guarantees a minimum hourly rate for adult workers (aged 21 and above) in the UK. The current (2024) National Living Wage rate is £11.44 (around $14.55).

Next year’s rate, announced by the UK’s new Labour government’s current chancellor of the exchequer, Rachel Reeves, is £12.21 (around $15.53). This will come into effect on April 1, 2025.

These rates apply to all employed workers. If you are self-employed, you do not have the right to these minimum rates. Some other groups are also excluded; you can find out more here.

The current National Minimum Wage in the UK

The National Minimum Wage rates apply to younger workers from the age of 16. The NMW rate depends on your exact age, so 17-year-olds have a different rate than 20-year-olds, for example. Current rates, and the upcoming rates for 2025, are as follows:

The apprentice rate applies to apprentices under the age of 19, or 19 and over in the first year of their apprenticeship.

So, an apprentice who is 19 or over and has completed their first year of apprenticeship is entitled to the NMW, or the NLW if they’re aged 21 or over.

Accommodation offset rates

If employers provide you with accommodation as part of your job, they can offset this in your wages. The daily accommodation offset rate is currently (2024) £9.99, and on April 1, 2025, it will increase to £10.66. This is the maximum amount that employers can offset, even if the accommodation cost is higher.

The accommodation offset rate means that your employer can pay an hourly wage that may appear lower than the legal minimum, but is legal because it takes the cost of the accommodation into account.

As long as they comply with the rules for offsetting, and the offset amount added to your hourly rate totals at least the NLW/NMW, this is compliant.

Cost of living in the UK

The alignment of the NLW with the cost of living throughout the UK presents a mixed picture. Like many countries, the UK has been experiencing an increase in things like housing, utilities, groceries, and childcare, so many feel that the NLW doesn’t meet the “real living wage.” This is especially true in larger cities like London, Birmingham and Manchester.

The Living Wage Foundation puts the current Real Living Wage, a benchmark for employers, at £12.60 for the whole of the UK except London. The London Living Wage is currently set at £13.85. These are only recommendations, so employers are not obliged to pay them.

Here are some average prices in the UK (these will vary depending on the region or city), to give you an idea of the cost of living:

• A liter (similar to a half gallon) of milk costs around £1.25-£1.50, and a loaf of bread costs around £1.20-£1.50.
• On average, rent in England is £1301 per month. In Scotland, it’s £957, and in Wales it’s £736. Across the UK, there was an average increase in rent of 8.7% in the 12 months leading to May 2024.
• The average annual energy bill (gas and electricity) for a 1-2 bedroom property in the UK is currently around £1250.
• An average restaurant meal could set you back between £11 and £30 per person.

How does the minimum wage in the UK compare to other countries?

Let’s see how the UK’s minimum wage compares to other countries in Europe:

Of course, the cost of living varies greatly across these countries, so these figures can’t be taken at face value. Factors such as housing costs, taxes, and average living expenses all play a crucial role in determining how far a minimum wage can stretch in each country.

Employment tips

Now that you know your rights for wages in the UK, here are some more tips for finding fair employment:

• You’ll need to apply for a national insurance number in order to work in the UK. To get this, you’ll need to prove your right to work in the UK.
• If you stay in the UK long term, you may be eligible for receiving a State Pension. You’ll need to make at least 10 years of national insurance contributions in order to qualify. Some employers additionally provide workplace pensions.
• In the UK, it is illegal for employers to discriminate against people with disabilities. Find out more here.
• If you are employed in the UK, you are legally entitled to rest breaks and paid holidays. If you work 5 days a week, you should receive at least 28 days of paid holiday a year (this usually includes bank holidays, although employers aren’t obliged to include bank holidays within your statutory entitlement).
• Reputable job websites include TotalJobs, Indeed and LinkedIn. Avoid scams by verifying the employer details.

Useful resources

If you want to find out more, try these helpful links:

• His Majesty’s Revenue & Customs (HMRC) is the UK’s national taxing authority.
• The UK government’s official website, gov.uk, contains information on a wide range of work-related topics.
• The Advisory, Conciliation & Arbitration Service (ACAS) is a government-funded organization that provides free and impartial advice on workplace rights, as well as training and dispute resolution. You can visit their website, where you’ll also find details of the ACAS helpline.
• The Living Wage Foundation promotes a voluntary wage rate that reflects the real cost of living, taking into account things like housing, food, and transportation.
• Citizens Advice offers free employment advice, as well as guidance on other topics such as immigration and housing.

FAQs