How Minimum Wage Works In The UK.

Many countries worldwide have a minimum wage which is the least amount anyone legally working should receive for their services. If you are moving to the UK for work, it’s helpful to know their minimum wage and the policies attached to it, so you have a clear picture of what to expect. 

It’s why we’ve put together this guide that explains:

• The types of minimum wage in the UK,

• Who sets the minimum wage and, 

• How to ensure you’re being paid the appropriate minimum wage.

Types Of Minimum Wage In The UK.

In the UK, the minimum wage is calculated per hour, so it’s the least amount you should expect to receive for each working hour of your time. There are two types of minimum wages: 

• National Minimum Wage: As we’ve touched on earlier, this is the minimum amount everyone who works in the UK is entitled to. 

• National Living Wage:  This wage usually has a higher rate than the National minimum wage and applies to everyone above 23 years old. 

To put it simply, if you are between 16 to 23 years old, the least amount you can be paid is what the national minimum wage for your age range dictates. If you are 23 and above, the least amount you can be paid is the current rate of the national living wage.

Currently, the national living wage in the UK is £9.50 and is already set to rise to £10.42 from April 2023. However, the exact amount set as minimum wage for people less than 23 varies across the board, and is determined by what age group you fall in.

Here are the current minimum wage rates:

Note: The rates for national minimum & living wage change on April 1 every year. The rates shown above are for April 1 2022 - April 1 2023.

Who Sets The Minimum Wage?

The Secretary of State determines the minimum wage on the recommendation of the low pay commission: an independent body of unions, employers and experts. 

How To Ensure You’re Being Paid The Appropriate Minimum Wage.

The UK government has a calculator that helps you confirm if you’re being paid the correct living/minimum wage and whether your employer underpaid you in the past year. You can use it here. 

If you find out you’re being unpaid, you should raise it with your employer, and complain to the HMRC (His Majesty’s Revenue & Customs) if there is no resolution after complaining. 

Did you find this article helpful? Tap the button below to share it.