The minimum wage is the lowest hourly rate an employer has to pay you by law
Minimum wage is rising next week – meaning a pay boost for millions of workers.
The minimum wage is the lowest hourly rate an employer has to pay you by law. It is set into pay brackets depending on your age, with the rates rising from April 1.
For workers that are over the age of 21, the minimum wage will increase from £12.21 an hour to £12.71 an hour.
It means if you are on the minimum wage and work 40 hours a week, your pay will increase from £25,397 to £26,437 a year – a boost of approximately £1,040.
Those aged 18 to 20 will see their rate rise from £10 an hour to £10.85 an hour, and under-18s and apprentices will see their minimum wage increase from £7.55 an hour to £8 an hour.
Many employers pay above the minimum wage – these rates are just the legal floor for workers and employers. But minimum wage rates do not apply if you are self-employed, volunteers and company directors.
Some companies pay the Real Living Wage, which is a voluntary pay that is based on the cost of living and is higher than the statutory minimum wage.
The Real Living Wage is rising to £13.45 an hour outside London, and £14.80 an hour inside London. Employers must implement these new rates by May 2026.
Check if you’re being underpaid
If you think you may be being underpaid, start by checking your payslip. If it looks like you haven’t been paid at least the minimum wage, talk to your employer first to give them the chance to put this right.
If this doesn’t resolve your issue, you can contact the Advisory, Conciliation and Arbitration Service (ACAS) service, which is an independent UK government body, to discuss your next options.
Your last resort is to take your employer to a tribunal – but seek advice from ACAS or Citizens Advice on this first, so you can be aware of the costs involved.
You could also choose to report your employer to HMRC, who will then decide whether to investigate. If your employer is found to have not paid you the minimum wage, they can be fined by HMRC.
HMRC can take them to court on behalf of the worker if the employer still refuses to pay. ACAS guidelines state you can either take your employer to a tribunal yourself, or complain to HMRC.
It says on the ACAS website: “You cannot take the same issue through two legal processes.”
