The National Minimum Wage (NMW) sets the legal minimum hourly rate for eligible workers in the United Kingdom, including most employees, casual staff, and some freelancers who meet the legal definition of a “worker.” It ensures fair pay, promotes equality, and protects against exploitation. 

The UK has two statutory minimum pay rates, the National Minimum Wage (NMW) and the National Living Wage (NLW), and one voluntary rate known as the Real Living Wage (RLW). 

• National Minimum Wage (NMW): Applies to workers under 21 and apprentices (depending on age and apprenticeship year). 

• National Living Wage (NLW): Applies to workers aged 21 and over and is the legal minimum for those age groups. 

• Real Living Wage (RLW): A voluntary rate calculated by the Living Wage Foundation based on the actual cost of living, covering essentials like rent, transport, and food. 

While the NMW/NLW are set by the government and legally enforceable, the Real Living Wage (RLW) is voluntarily adopted by many employers to demonstrate a commitment to fair pay and workforce wellbeing. 

• Employees and most workers, including part-time, temporary, and casual workers. 

• Freelancers or contractors may qualify for the National Minimum Wage if they meet the legal criteria for "worker" status. This applies to contracts where: 

• The individual is required to perform the work personally (cannot send a substitute). 

• There is mutual obligation between the parties (the individual is obligated to perform work, and the employer is obligated to provide it). 

• The individual is not genuinely self-employed, i.e., they do not have control over how and when they do their work. 

Examples of such contracts include fixed-term contracts, zero-hours contracts, and agency contracts. 

• Apprentices (specific rules apply depending on age and apprenticeship progress). 

• Other workers who meet the legal criteria. 

Employees - Employees are individuals who work under a contract of employment and are entitled to the full suite of employment rights. Employers must ensure these workers are paid at least the NMW based on their age or apprenticeship status. 

Workers - Workers, including those on zero-hours contracts, are entitled to the NMW if they provide services under a contract and are not genuinely self-employed. Most workers in the UK who are over school-leaving age (16 years old) are entitled to the NMW, including those working full-time, part-time, or on a temporary basis, subject to certain exceptions outlined “Age Brackets & Current Rates” section below. Employers should assess contracts carefully to ensure compliance. 

Freelancers or Contractors - Freelancers or contractors may qualify for NMW depending on the nature of their contracts. If their work arrangements closely resemble those of employees or workers, they must be paid the NMW. For further guidance on employment status, please refer to the Employment Status Guide on GOV.UK

Apprentices - Apprentices are entitled to the NMW apprentice rate or the appropriate age rate depending on their apprenticeship year and age. Employers should track apprenticeship progress carefully to meet their obligations. Apprentices are entitled to the apprentice rate if they are either: 

• Aged under 19. 

• Aged 19 or older and in the first year of their apprenticeship. 

Apprentices aged 19 or over and past the first year of their apprenticeship are entitled to the minimum wage for their age group. 

Certain groups are not entitled to the NMW:

• Self-employed individuals: Those running their own businesses or providing services to multiple clients as independent contractors.
• Voluntary workers: Those working for charities, voluntary organisations, or associated fundraising entities without formal employment contracts.
• Family members working in a family business: If they live in the employer’s home and share in the household’s work and responsibilities.
• Certain trainees: Under specific work experience or placement arrangements (e.g., during university studies).

While the National Minimum Wage is the statutory minimum, the Real Living Wage is a voluntary rate promoted by the Living Wage Foundation. It is based on the cost of living and is updated annually. 

The most recent rates announced on 15 October 2026 are:

Businesses accredited by the Living Wage Foundation are expected to implement the new rate by 1 May 2027. These rates are higher than the statutory minimums and reflect the real cost of living, especially in London. 

For more information, visit: Living Wage Foundation – Real Living Wage 

While paying the National Minimum Wage (NMW) or National Living Wage (NLW) ensures legal compliance, paying the Real Living Wage (RLW) demonstrates a stronger commitment to fairness and inclusion. 

In the screen industries, low entry-level pay has long been identified as a barrier to people from working-class or under-represented backgrounds. The TV Foundation’s recent findings show that low pay is one of the main reasons for the under-representation of working-class people in television and recommend that employers pay the Real Living Wage to help improve access and diversity across the sector. 

By adopting the Real Living Wage, screen businesses can: 

• Support diversity and inclusion by removing financial barriers to entry. 

• Enhance their reputation: many in the industry now view paying only the legal minimum as falling short of fair practice. 

• Promote wellbeing and retention, as fair pay reduces turnover and builds trust within teams. 

Many screen businesses already choose to pay the Real Living Wage to reflect their values and commitment to social responsibility.

Determining Pay Rates - Pay rates must include all eligible pay elements, such as hourly wages, overtime, and bonuses, while excluding "rolled-up" holiday pay, which can inadvertently reduce effective rates below the NMW threshold. 

Qualifying Hours - Qualifying hours include on-the-job hours, training, and standby hours when workers are at their employer's disposal. Unpaid breaks and commute times generally do not qualify. 

Practical Examples - For example, an hourly rate of £10 may fall below NMW thresholds if it includes holiday pay that is not explicitly separated. Employers must calculate pay rates carefully to remain compliant. 

Businesses must ensure that the wages paid to workers meet or exceed the National Minimum Wage (NMW) rates. To confirm compliance: 

• Use the National Minimum Wage and Living Wage Calculator on GOV.UK to verify pay rates against the required legal standards. 
   

• Regularly review employment contracts, payslips, and recorded hours worked to ensure that pay calculations align with NMW regulations. 

Steps to Address Potential Underpayment Issues 

Businesses must take prompt action to identify and rectify any instances of underpayment to comply with National Minimum Wage (NMW) regulations. Steps to follow: 

1. Review pay records and hours worked. 

2. Engage with workers to clarify concerns. 

3. Seek advice from payroll or legal specialists if unsure. 

4. Rectify errors promptly and pay any arrears. 

5. Train staff and audit regularly to maintain compliance. 

Employers who fail to meet their legal obligations under the National Minimum Wage (NMW) regulations may face significant consequences. HM Revenue and Customs (HMRC) is responsible for enforcing compliance and can take the following actions:

• Financial Penalties: Employers can be fined up to 200% of the total underpayment, with a cap of £20,000 per worker. The penalty is reduced by 50% if the employer pays the arrears and the penalty within 14 days of the notice of underpayment.
• Arrears Repayment: Employers must repay the underpaid wages to affected workers.
• Public Naming and Shaming: The government regularly publishes the names of employers who breach NMW laws, which can harm the employer’s reputation.
• Criminal Prosecution: In severe cases of non-compliance, employers may face criminal charges.

Maintaining compliance with NMW regulations is essential to avoid these penalties and uphold fair workplace practices.

Note: Material on this platform is not legal advice but we’re here to point you in the right direction if needed.

Last updated 20/10/2026

Note: Material on this platform is not legal advice but we’re here to point you in the right direction if needed.