Source: HMRC
National Minimum Wage (NMW) and National Living Wage (NLW) are the lowest rates of pay per hour that most workers must be paid by law. It does not matter how many workers you employ, you must pay at least NMW or NLW.
Rates increase on 1 April each year. This means employers need to use the new rates from the first pay reference period starting after 1 April 2025.
However, NMW and NLW are more than just pay rates, they are calculations. Many employers find themselves underpaying workers because the calculation has gone wrong.
Common issues range from making deductions, to not paying for all working time.