National Minimum Wage April 2025: Employer Guide

The National Living Wage increased to £12.21 per hour from April 2025, applying to workers aged 21 and over. The 18-20 rate increased to £10.00 per hour, the 16-17 and apprentice rate to £7.55 per hour. These are the largest increases in the rates' history in some bands.

NMW compliance is a hard legal requirement. Paying below the rate — even by a few pence per hour — is unlawful, exposes you to HMRC investigation, and results in mandatory back-pay plus a financial penalty of up to 200% of the underpayment (minimum £100). HMRC names employers who breach NMW obligations publicly on a quarterly list. The reputational cost adds to the financial one.

Common errors include: forgetting to update rates when employees turn 21 or 18; applying the apprentice rate to apprentices who are 19 or over and past their first year; deducting the cost of uniforms or tools in a way that brings effective hourly pay below the minimum; and failing to pay for all working time including mandatory training and waiting time. Mellow flags employees who are approaching age milestones so their rate is updated before the next pay run.