What is the minimum wage in the UK?
Minimum Wage
The minimum wage refers to the hourly pay that employees are entitled to - regardless of the company's size.
In the United Kingdom, the minimum wage depends on the employee's age and personal situation:
- An employee aged 21 and over is entitled to the National Living Wage.
- An employee under 21 is entitled to the National Minimum Wage.
- An apprentice is entitled to the Apprentice rate.
advertisement
For those over 21: National Living Wage
As of April 1, 2024, the English minimum wage for employees over 21 years old is £11.44 per hour (gross).
Self-employed individuals, employers, fishermen, and people working and living in a religious community are not subject to the minimum wage.
For those under 21: National Minimum Wage
For employees under 21 years old, the hourly rate of the National Minimum Wage varies according to age:
| Between 18 and 20 years old | £8.60 per hour (gross) |
| Under 18 years old | £6.40 per hour (gross) |
For apprentices: Apprentice rate
For apprentices, the minimum hourly rate is £6.40 per hour (gross) if:
- The apprentice is under 19 years old
- The apprentice is 19 years old or over and is in the first year of their apprenticeship
If the apprentice is over 19 years old at the end of their first year, they are entitled to the hourly rate corresponding to their age bracket in the National Minimum/Living Wage (above).
Calculating the Minimum Wage
For an employee over 21 years old
For an employee - over 21 years old - working 40 hours per week (full-time), the calculation of the minimum wage (gross) is as follows:
40 hours x 52 weeks = 2080 hours x £11.44 = £23,795.20/year (approximately £1,982.93/month)
For an employee under 21 years old
For an employee - 20 years old - working 35 hours per week (full-time), the calculation of the minimum wage (gross) is as follows:
35 hours x 52 weeks = 1820 hours x £8.60 = £15,652/year (approximately £1,304.33/month)
For an apprentice
For an apprentice - 18 years old - working 20 hours per week, the calculation of the minimum wage (gross) is as follows:
20 hours x 52 weeks = 1040 hours x £6.40 = £6,656/year (approximately £554.67/month)
Average Wage
The median wage* in the United Kingdom is officially published each month by the Office for National Statistics (ONS).
In February 2024, the median wage in the United Kingdom was £2,331 per month (gross).
Note that several factors influence the level of wages:
- the sector and industry of the job
- the professional experience of the person holding the job
- the location of the company.
Here are the latest official data published (February 2024) showing the median wage across different regions of the United Kingdom:
* The median wage corresponds to the wage at which half of the employees earn less and the other half earn more. It differs from the average wage, which is the average of all wages. The median wage is therefore more appropriate as it mitigates the effect of very high/low salaries.
Working Hours
In the United Kingdom, an employee is considered to be full-time if they work a minimum of 35 hours per week.
These 35 hours typically correspond to 5 working days per week - from Monday to Friday, 9am to 5pm, with one hour for lunch break.
Contracts of more than 35 hours per week are common - additional hours are not considered overtime.
An English employment contract cannot exceed 48 hours per week - any additional hours would be on a voluntary basis.
Pay Frequency
Salary payment is generally monthly (at the end of the month).
Some employers opt to pay salaries on a weekly basis.
Employee and Employer Contributions
Employee Contributions
The employee contributions on their gross salary are:
- Income tax collected at source ("Pay As You Earn (PAYE) contributions" in English): contributions determined according to the employee's personal situation.
- National Health System contributions ("NI contributions" in English): calculated in bands based on gross salary.
- Pension contributions ("Pension scheme contributions" in English): calculated in bands based on gross salary.
By default, the pension fund is the one offered by the State (NEST), but it is also possible to choose a private pension fund.
- Other contributions: optional health insurance, etc.
Employer Contributions
The employer contributions on the gross salary are:
- National Health System contributions ("NI contributions"): calculated in bands based on gross salary.
- Pension contributions ("Pension scheme contributions"): calculated in bands based on gross salary.
Employee and employer contributions are generally equivalent.
- Other contributions: optional health insurance, etc.
Payslip
The main elements found on a payslip are as follows:
- Employee identification: name, National Insurance Number, tax code (PAYE contributions).
- Period
- Gross salary
- Employee and employer contributions
- Net salary payable
- Breakdown of holiday entitlement (optional)