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Key definition
National minimum wage definition

What does National minimum wage mean? The statutory minimum hourly pay that an employer must pay eligible staff. In practice, it is the baseline pay floor used in drafting contracts, payroll compliance and employment due diligence. United Kingdom (England & Wales, Scotland and Northern Ireland): Defined in the National Minimum Wage Act 1998 and the National Minimum Wage Regulations 2015, with rates set by regulations following Low Pay Commission recommendations. Bands vary by age and apprenticeship; the highest band is the statutory National Living Wage for workers aged 21 and over. It applies to most “workers” (including casual, part‑time and agency workers), but not the genuinely self‑employed,...

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National Minimum Wage, National Living Wage and Real Living Wage—eligibility, rates, calculation, accommodation, gig work, seafarers, deductions, record-keeping, enforcement (Fair Work Agency), claims, offences and protections

Practice notes
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This Practice Note examines the National minimum wage (NMW) and the national living wage (NLW). It also notes the ‘real living wage’, set by the Living Wage Foundation.

It explains who qualifies—Workers, agency and home workers—and where exclusions apply for training, work experience and trial shifts. It sets out rates (including for apprentices and agricultural workers), pay calculation across the pay reference period, and the effect of living accommodation. It outlines types of hours (salaried, time, output and unmeasured work), night shifts and sleeping at or near work, training time, and travelling to and from work and training. It covers record keeping, underpayment and workers’ claims, plus enforcement by the Fair Work Agency, naming and shaming, criminal offences, Labour Market Enforcement undertakings and orders (LMEs), protection from detriment, automatic unfair dismissal, and the bar on contracting out. The National Minimum Wage Act 1998 (NMWA 1998) and the National Minimum Wage Regulations 2015 (NMW Regs 2015), SI 2015/621, guarantee a minimum hourly rate to almost all adult workers. Government guidance for employers explains calculation, with a checklist highlighting common underpayment causes, plus example scenarios and calculations...

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Web page updated on 21/05/2026

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