Hello Everyone, The minimum wage is one of the most important policies for workers in the United Kingdom, as it directly impacts take-home pay, job satisfaction, and the standard of living. From September 2025, the UK government will introduce new minimum wage rates, ensuring fairer pay across different age groups and job roles.
In this article, we will explore the updated wage rates, who is eligible, how these changes affect employees and employers, and what workers aged under 21, 21–22, 23+, and apprentices can expect. We’ll also answer some frequently asked questions to clear up common doubts.
What is the National Minimum Wage?
The National Minimum Wage (NMW) is the minimum hourly pay that almost all workers are legally entitled to receive. It was introduced in the UK in 1999, with the aim of preventing unfairly low pay.
Alongside the NMW, there is also the National Living Wage (NLW), which applies to workers aged 23 and over. These rates are reviewed annually, but in 2025, the government has decided to bring mid-year updates to keep pace with inflation, the cost of living, and labour market conditions.
Why is the Minimum Wage Rising in September 2025?
There are several reasons behind the wage increase:
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Inflation Pressure: Rising food, energy, and housing costs have created financial challenges for UK households.
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Labour Market Gaps: Sectors such as hospitality, retail, and social care face worker shortages. Higher wages aim to attract and retain staff.
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Government Policy: The UK government has committed to creating a “high-wage, high-skill economy.”
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Fairness for Young Workers: Previous wage structures created a significant gap between younger and older workers. The new policy reduces this gap gradually.
Updated Minimum Wage Rates from September 2025
Here are the new rates coming into effect across the UK:
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Ages 23 and over (National Living Wage): £12.20 per hour
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Ages 21–22: £11.80 per hour
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Ages 18–20: £9.85 per hour
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Under 18: £7.10 per hour
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Apprentices: £6.90 per hour
These rates will apply from 18 September 2025 onwards and will be reviewed again in April 2026.
Who is Eligible for the New Rates?
Not every worker in the UK qualifies for the minimum wage. To understand eligibility, here’s a breakdown:
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Eligible Workers:
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Employees and casual workers
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Part-time and full-time staff
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Temporary or seasonal workers
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Agency workers
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Apprentices
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Not Eligible:
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Self-employed individuals
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Company directors
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Volunteers
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Family members working in a family business without formal contract
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It is important to note that all UK employers are legally required to pay the correct rate depending on the worker’s age and job category.
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Impact on Workers
For workers, the increase brings several benefits:
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Higher Take-Home Pay: A full-time employee aged 23+ will earn around £1,000 more annually after this change.
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Better Living Standards: Rising wages can help with rent, bills, and everyday expenses.
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Fairer Pay for Young Workers: The gap between 21–22-year-olds and older colleagues is now much smaller.
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Boost in Morale: Employees often feel more valued when wages rise.
Impact on Employers
For businesses, this change also has significant implications:
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Higher Payroll Costs: Employers in retail, hospitality, and care services will face higher wage bills.
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Pressure on Small Businesses: Some small firms may struggle to adjust.
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Retention and Recruitment: Offering competitive pay helps reduce staff turnover.
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Compliance Obligations: Employers must keep accurate wage records to prove compliance with HMRC rules.
Failure to comply could lead to penalties of up to £20,000 per worker and public naming-and-shaming by the government.
How the New Wage Affects Different Sectors
Different industries will experience the impact differently:
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Hospitality & Retail: These sectors employ many young and part-time workers, so the effect will be significant.
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Care Services: Rising pay could help reduce staff shortages.
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Construction & Trades: Apprentices will benefit from higher entry-level pay.
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Public Services: Local councils and NHS support roles will also need to adjust payroll budgets.
Minimum Wage and Inflation – Will It Be Enough?
While the rise is welcome, many UK households are still facing a cost-of-living crisis. Rising utility bills, transport fares, and housing costs mean even with the new rates, some workers may still struggle financially.
That’s why campaigners are pushing for wages to match the Real Living Wage, a voluntary rate calculated by the Living Wage Foundation based on the actual cost of living. You can learn more about the voluntary Real Living Wage at the Living Wage Foundation website.
How to Check If You’re Being Paid Correctly
Workers can check their payslips and compare hourly rates with the official government tables. If underpaid, employees can:
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Raise the issue with their employer
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Contact ACAS (Advisory, Conciliation and Arbitration Service)
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Report to HMRC for investigation
Workers are legally protected from unfair dismissal if they raise concerns about being paid less than the minimum wage.
What About Overtime and Zero-Hour Contracts?
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Overtime: Workers must still receive at least the minimum wage for each hour worked, including overtime.
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Zero-Hour Contracts: Even if hours vary, the hourly rate must meet the minimum wage.
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Tips & Service Charges: Employers cannot count customer tips towards the minimum wage.
Future of Minimum Wage in the UK
Experts predict that by 2026, the UK minimum wage for over-23s could reach £13 per hour if inflation remains high. The government has also indicated that the gap between young workers and older workers will continue to narrow, aiming for a more equal pay structure in the future.
FAQs on UK Minimum Wage Rise September 2025
Q1. What is the new minimum wage in the UK from September 2025?
From 18 September 2025, workers aged 23 and over will receive £12.20 per hour.
Q2. Do apprentices qualify for the new wage rates?
Yes, apprentices have their own rate, set at £6.90 per hour from September 2025.
Q3. Will this increase affect part-time workers?
Yes, all eligible workers, whether part-time or full-time, are entitled to the new rates.
Q4. What happens if my employer does not pay the new wage?
You can raise the issue with your employer, report it to HMRC, or seek advice from ACAS. Employers who fail to comply may face heavy fines.
Q5. Are tips and bonuses included in minimum wage calculations?
No, employers cannot use tips, service charges, or bonuses to make up the minimum wage.
Q6. Does the minimum wage differ in Scotland, Wales, and Northern Ireland?
No, the rates are the same across the whole of the UK.
Q7. Where can I find more information about fair pay in the UK?
You can visit the Living Wage Foundation or the official UK government website for updates.
Final Thoughts
The UK minimum wage rise from September 2025 is a major step towards fairer pay and reducing income inequality. Workers will benefit from higher wages, while employers will need to adapt to increased payroll responsibilities.
For employees, it’s essential to stay informed, check payslips, and ensure you’re being paid the correct amount. For businesses, compliance and smart financial planning are key.
The minimum wage will continue to evolve in the coming years, but for now, millions of UK workers can look forward to better pay from September 2025.