What is the National Minimum Wage for 2024/25?

From April 2024: National Living Wage (21+) = £11.44/hr; 18–20 = £8.60/hr; 16–17 = £6.40/hr; Apprentice (year 1 or under 19) = £6.40/hr.

What is the HMRC penalty for NMW underpayment?

HMRC can issue a civil penalty of 200% of total arrears (minimum £100, maximum £20,000 per worker), require repayment of all arrears, and publicly name the employer on GOV.UK.

Do tips count towards the National Minimum Wage?

No. Since October 2024, tips, gratuities, and service charges cannot be used to top up NMW compliance. Only basic contractual cash wages count.

When does the apprentice rate expire?

The apprentice rate applies only during the first year of the apprenticeship or while the apprentice is under 19. After year one (if aged 19+), the age-appropriate NMW rate applies automatically.

National Minimum Wage Calculator 2024/25

Check whether a worker's pay meets the 2024/25 NMW or NLW. Enter their date of birth (or select the age band manually), current hourly rate, and weekly hours. The calculator will show compliance status and estimate the HMRC penalty if underpayment is detected.

NMW / NLW Compliance Checker 2024/25

Check whether an employer's pay rate meets the 2024/25 National Minimum Wage

Date of birth (optional)

Used to automatically select the correct wage band

Employment type

Apprentices in year 1 or under 19 receive the apprentice rate

Hourly rate (£)

The gross hourly rate paid by the employer

Hours per week

Average or contracted weekly hours

2024/25 NMW / NLW Rates (from April 2024)

Worker category	Hourly rate	Annual (37.5 hrs/wk)
21 and over — National Living Wage	£11.44	£22,308.00
18–20	£8.60	£16,770.00
16–17	£6.40	£12,480.00
Apprentice (year 1 or under 19)	£6.40	£12,480.00

2024/25 NMW / NLW Rates (from April 2024)

21 and over (National Living Wage): £11.44/hr
18–20: £8.60/hr
16–17: £6.40/hr
Apprentice (year 1 or under 19): £6.40/hr

What Does Not Count Towards the Minimum Wage?

Employers cannot use tips, gratuities, service charges, accommodation (above the offset rate), uniform allowances, loans, pension contributions, or benefits in kind to satisfy the NMW. Only cash wages paid through payroll count.

HMRC Enforcement and Penalties

HMRC investigates all complaints and carries out proactive audits — particularly in hospitality, retail, social care, and cleaning. Employers who underpay face:

Repayment of 100% of arrears per worker
A civil penalty of 200% of those arrears (max £20,000 per worker, min £100)
Public naming on GOV.UK
Possible criminal prosecution in serious cases

FAQs

Does NMW apply to zero-hours workers?

Yes. All workers — including zero-hours, agency, and casual workers — are entitled to NMW for every hour worked. There is no minimum hours threshold.

Can salary sacrifice reduce pay below NMW?

Yes. Salary sacrifice schemes (e.g. cycle to work, pension) reduce gross pay. Employers must ensure the post-sacrifice effective hourly rate still meets the applicable NMW rate.