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The national living wage in the UK (for those 21+) is €11.44 as of April 2024 and is expected to increase to €12.21 in April 2025. That being said, not everyone qualifies for it. Residents must be at least school leaving age to qualify for minimum wage in the UK.
The following page outlines how the minimum wage applies to all workers in the UK and how an employer of record (EOR) platform can help international businesses expand within its borders.
The National Minimum Wage in the UK
The minimum wage in the UK breaks down as follows:
Minimum Wage in UK by Demographic
Who Qualifies for the National Living Wage?
As of April 1, 2024, any employee 21 and older in the United Kingdom qualifies for the national living wage. This qualifying age was lowered from 23, which had been the standard starting in 2022. In earlier years beginning in 2018, the qualifying age was 25.
The United Kingdom has a government-provided minimum wage calculator to determine whether an employer is paying the national living wage or minimum wage in the UK.
Exceptions
People belonging to certain groups do not qualify for either the national living wage or the minimum wage in the UK. These groups include:
- Self-employed individuals
- Company directors
- Volunteers
- Government employment program workers
- Military personnel
- Employees under 16 (referred to as “school leaving age”)
- Higher Ed students on
a.) work experience or
b.) work placement (up to one year) - People “shadowing” other employees on the job (see below)
- Pre-apprenticeship programs
- EU Programs including Leonardo da Vinci, Erasmus+, and Comenius
- Jobcentre Plus work trial employees (up to 6 weeks)
- Share fishermen
- Inmates
- Individuals in a religious community
Apprentice Status
An apprentice is any employee in the UK who is either:
- Under 19 years of age
- 19 or over and in their first year of apprenticeship
These employees become eligible for minimum wage status once they turn 19 and complete their first year of apprenticeship.
Notably, the wage for which a person qualifies varies greatly depending on their status classification, which can lead to some confusion for business owners when dealing with apprenticeship wages.
Misclassification errors are one of the biggest challenges for business owners seeking to hire in the UK. Working with an employer of record (EOR) platform like Skuad can help reduce these errors, allowing you to hire and manage international employees more effectively. Use our employee cost calculator to determine your global employment costs.
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Talk to an expertMinimum Wage in the UK Over Time
The national living wage has been updated every April since 2015. In addition, the minimum wage in the UK has also increased for all other demographic groups.
Notably, the minimum wage in the UK for employees under 18 has melded with the going rate for apprentices starting in 2022, suggesting a streamlining of these payment classes sometime in the future.
Minimum Wage in the UK, Compared
The minimum wage in the UK remains competitive with those in neighboring countries and rests squarely on the median between the highest and lowest amounts.
Minimum Wage Legislation in the UK
Two critical pieces of legislation determine the minimum wage that business owners in the UK will need to observe when hiring. These are:
While these are the two most important laws governing minimum wages in the UK, the country has extensive labor laws protecting employees, working hours, and regulating payroll deductions. Business owners must have specialists available to ensure compliance with local laws if they plan on hiring directly.
For this reason, many business owners choose to work with a global employer of record (EOR).
Average Income in the UK
As per the most recent data, the average annual income in the UK is expected to be £37,000.
In USD, the UK average income would be approximately $46,845.
However, the average monthly income in the UK differs based on the region, industry and roles. In January 2025, the monthly average income is at £ 2,442.
Now, let’s look at the region-wise breakdown of average income.
Average Income in UK - Region-wise Breakdown
Hiring With an Employer of Record (EOR)
Whereas hiring directly in the UK requires you to set up a local legal entity before you start hiring, working through an EOR platform allows you to take on new employees across borders with relative ease.
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As we suggest above, there’s a great deal to keep track of when hiring across borders.
EORs handle the heavy lifting for you by automating locally compliant employment contracts, conducting background checks, and issuing workplace equipment.
Great talent is everywhere. As your business expands, you’ll want to have the resources to source the best talent from all over the world.
EORs make this easier by giving business owners access to multi-currency accounts that allow them to pay employees easily without expensive currency conversion fees.
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EORs allow companies to more effectively:
- Manage employee benefits
- Track and approve company reimbursements
- Track time and attendance
These features simplify your life as a business owner. They also strengthen the employees' relationship with the company, as they know that you have their back whenever they need it.
Hiring in the UK with Skuad
Because hiring in the UK is complex, many business owners elect to work through an EOR platform to handle the heavy lifting. Skuad has assisted thousands of companies as they expand their businesses across borders. Talk to our teams and see what we can do for you.
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