The National Minimum Wage and Living Wage

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Who gets the minimum wage

People classed as ‘workers’ must be at least school leaving age to get the National Minimum Wage. They must be 21 or over to get the National Living Wage.

Contracts for payments below the minimum wage are not legally binding. The worker is still entitled to the National Minimum Wage or National Living Wage.

Workers are also entitled to the correct minimum wage if they’re:

  • part-time
  • casual labourers, for example someone hired for one day
  • agency workers
  • workers and homeworkers paid by the number of items they make
  • apprentices
  • trainees, workers on probation
  • disabled workers
  • agricultural workers
  • foreign workers
  • seafarers
  • offshore workers
  • non-family members living in the employer’s home who share in the work and leisure activities and are treated as one of the family, for example au pairs

Apprentices

Apprentices are entitled to the apprentice rate if they’re either:

  • under 19
  • 19 or over and in the first year of their apprenticeship

Apprentices over 19 who have completed the first year of their apprenticeship are entitled to the correct minimum wage for their age.

Not entitled to the minimum wage

The following types of workers are not entitled to the National Minimum Wage or National Living Wage:

  • self-employed people running their own business
  • company directors
  • people who are volunteers or voluntary workers
  • workers on a government employment programme, such as the Work Programme
  • members of the armed forces
  • family members of the employer living in the employer’s home
  • workers younger than school leaving age (usually 16)
  • higher and further education students on work experience or a work placement up to one year
  • people shadowing others at work
  • workers on government pre-apprenticeships schemes
  • people on the following European Union (EU) programmes: Leonardo da Vinci, Erasmus+, Comenius
  • people working on a Jobcentre Plus Work trial for up to 6 weeks
  • share fishermen
  • prisoners
  • people living and working in a religious community

Employers who offer internships (sometimes called ‘work placements’ or ‘work experience’) should check if the person is entitled to the minimum wage.

Voluntary work

You’re classed as doing voluntary work if you can only get certain limited benefits (for example reasonable travel or lunch expenses) and you’re working for a:

  • charity
  • voluntary organisation or associated fundraising body
  • statutory body

Contact the Acas helpline to find out if you should be getting the minimum wage.

View a printable version of the whole guide

Part of Get your business ready to employ staff: step by step

  1. Step 1 Decide what type of employee you need

    1. Check whether you need full time or part time staff
    2. Check the different types of employment status

  2. and Check you can afford to take on employees

    1. Check how much the National Minimum Wage is
    2. Find out how much National Insurance you need to pay for your employees
    3. Check how much sick pay your employees are eligible for
    4. Check how much you need to pay towards your employee's pension
    5. Check how much Maternity Leave you need to pay your employees
    6. Check how much Paternity Leave you need to pay your employees

  3. Step 2 Make your workplace safe and accessible for employees

    1. Prevent discrimination
    2. Make your workplace accessible for employees with disabilities or health conditions
    3. Keep employee information and data safe
    4. Fire safety
    5. Health and safety

    You also need to make checks when you recruit and employ someone.

    1. Find out what you need to check when you employ someone

  4. Step 3 Register as an employer and set up PAYE

    You need to register with HMRC so you can pay tax and national insurance for your employees.

    1. Register as an employer and set up PAYE
    2. Choose how to run payroll
    3. If you decide to run payroll yourself, choose payroll software

  5. Step 4 Check your responsibilities around workplace pensions

    1. Understand your pension responsibilities as an employer

  6. Step 5 Get Employers' Liability insurance

    1. Find out about Employers' Liability insurance

  7. Step 6 Recruit and employ staff

    1. Employ someone