National Minimum Wage statistics

What is the National Minimum Wage?

The National Minimum Wage (NMW) applies to most workers and sets minimum hourly rates of pay. The rates are provided in regulations made by the Secretary for State with parliamentary approval, based on the recommendations of the Low Pay Commission (LPC).

NMW rates vary by age group. NMW rates vary by age group. From April 2024 the minimum wage is: 

• £11.44 per hour for adults aged 21 and over (this is the National Living Wage),
• £8.60 for 18-20 year olds, 
• £6.40 for under 18s, 
• £6.40 for apprentices. 

From April 2025 the minimum wage will be:

• £12.21 per hour for adults aged 21 and over,
• £10.00 per hour for 18-20 year olds,
• £7.55 for under 18s,
• £7.55 for apprentices.

How has the value of the NMW changed over time?

The value of each minimum wage rate has increased in real terms (i.e., has increased faster than prices) since the NMW was first introduced in 1999. In the aftermath of the 2008/09 recession, the real value of all minimum wage rates decreased. In April 2022 some rates decreased in real terms due to high inflation but rose again in April 2023 and 2024.

Low Pay Commission remit

The Low Pay Commission met its target of a National Living Wage worth 60% of median earnings in 2020 and fell slightly short of its target 66% of median wages in April 2024, when it reached 65% of median wages.

The government set a new remit for the LPC in September 2024. This says the NLW should not fall below 66% of median hourly earnings and that the LPC should take into account the cost of living, including expected inflation trends. It also says LPC should gradually abolish the 18-20 rate, so that the NLW eventually applies those aged 18+.

How many people are paid at the NMW?

The Low Pay Commission estimated that there were around 1.9 million workers paid at or below the minimum wage in 2024, around 6.5% of all UK workers. This compares to 1.5 million jobs paid at or below the NMW in 2015, before the introduction of the National Living Wage.

Jobs paid around the minimum wage are concentrated within a small number of low-paying occupations. The Low Pay Commission estimates that around a third of all jobs paying at or below the minimum wage are in retail and hospitality occupations.

Employees living in Northern Ireland, employees working in in Hair and beauty occupations, employees in micro or small firms, disabled employees and employees from a Bangladeshi ethnic group are more likely to have a minimum wage job.

How does the NMW compare to minimum wages in other countries?

The UK has a relatively high minimum wage, in terms of monetary value, compared with other OECD countries. In 2023, the UK had the eighth highest adult minimum wage out of OECD countries (based on the National Living Wage rate) after taking into account differences in the cost of living.