Payroll
Everything UK employers need to know, and how to stay compliant.
The National Minimum Wage (NMW) and National Living Wage (NLW) increase every year on 1 April, with rates based on a worker’s age and whether they are an apprentice. These statutory rates are confirmed by the UK government and apply to all employers .
Below are the newly confirmed hourly rates for April 2025 and April 2026, plus clear guidance on what employers must do next.
New National Minimum Wage & Living Wage Rates .
National Minimum Wage and National Living Wage rates - GOV.UK
Who gets the National Living Wage?
Workers must be aged 21 or over to receive the National Living Wage.
Workers aged 20 and under receive the minimum wage for their age group.
Apprentice Minimum Wage rules (explained simply)
Apprentices are entitled to the apprentice rate if they are:
- Under 19, or
- 19 or older and in the first year of their apprenticeship
Example:
- A 21‑year‑old apprentice in their first year → £8.00 (2026 rate).
- A 21‑year‑old apprentice after year one → full 21+ rate (£12.71 in 2026).
What employers need to do before April each year
- Review pay rates for all staff
Ensure every worker meets the new statutory minimum.
- Check NMW impact for variable and commission-based roles
Commission, unpaid training time and deductions can create hidden breaches.
- Update payroll software & systems
New rates must be applied before the first April payroll run.
- Review salary sacrifice arrangements
Salary sacrifice cannot reduce pay below NMW/NLW. - Ensure correct apprentice rates
Move apprentices to the correct age‑based rate at the right time.
How Burgess Hodgson helps employers stay compliant
As a CIPP‑accredited payroll team, BH offers proactive compliance support to ensure you never fall foul of NMW rules.
We support with:
- Automatic NMW checks via PayCircle + BH-built tools
- NMW audit and risk review for your workforce
- Apprentice rate monitoring
- Commission and variable-pay compliance checks
- Salary sacrifice impact assessments
- Dual‑control payroll governance (processor + checker)
- Proactive alerts before annual rate changes
If you need confidence that your payroll is fully compliant, we’re here to help:
contactpayroll@burgesshodgson.co.uk
