As September 2025 begins, workers and employers across the country are double-checking pay packets against the latest UK minimum wage rules.
This guide explains exactly what you should be paid, who qualifies for which age band, and how the National Living Wage (NLW) and National Minimum Wage (NMW) apply right now.
While headlines may suggest a fresh change in September, the current legal rates were introduced on 1 April 2025 and continue to apply through September—so it’s vital to know the correct figures and how they affect your hourly pay.
Inside, you’ll find a simple, accurate breakdown by age group (including 21 and over, 18–20, 16–17, and apprentices), plus the often-missed accommodation offset rules that can impact your final calculation.
We also show you how to read your payslip, what counts as working time, which deductions are allowed, and why tips/service charges cannot be used to “top up” wages to the legal minimum.
For quick planning, we’ve included clear tables, real-world weekly and monthly pay illustrations, and a short FAQ answering the most common questions.
Whether you’re an employee checking eligibility or an employer keeping payroll compliant, this article gives you the full picture—so you can avoid costly mistakes and make sure every hour is paid at the correct rate.
At A Glance: The Rates In Force (September 2025)
From 1 April 2025, the Government implemented the following National Living Wage (NLW) and National Minimum Wage (NMW) rates. These are still the legal minimums in September 2025:
| Age/Category | Hourly Rate (from 1 Apr 2025) | Increase vs 2024 |
|---|---|---|
| 21 and over (NLW) | £12.21 | +6.7% |
| 18–20 | £10.00 | +16.3% |
| 16–17 | £7.55 | +18.0% |
| Apprentice | £7.55 | +18.0% |
| Accommodation offset (max counted) | £10.66/day (£74.62/week) | +6.7% |
These figures were set via legislation for 1 April 2025 following Low Pay Commission (LPC) recommendations and remain current in September 2025.
Key change to know: Since April 2024, the National Living Wage applies from age 21+ (previously 23+). That continues in 2025.
Why You’re Hearing About September
By September 2025 many businesses and workers are simply mid-year under the April 2025 rates.
The next statutory change is not scheduled for September; the normal cycle is April.
Employers must apply the updated rates from the first pay reference period starting on or after 1 April 2025 (for example, a monthly payroll that runs 16th–15th would switch on 16 April).
Who Gets what (And Why)
- National Living Wage (NLW): applies to workers aged 21+ who are not in the first year of an apprenticeship. Rate: £12.21/hour.
- National Minimum Wage (NMW): applies to younger bands and apprentices at the rates in the table above.
- Most workers are entitled to the minimum wage: full-time, part-time, agency, casual/zero-hours, etc. Some roles are exempt, including self-employed people, company directors, volunteers, and those below school-leaving age.
Apprentices: entitled to the apprentice rate if under 19, or 19+ and in the first year. After the first year (and still 19+), they get the relevant age rate.
What Doesn’t Count Towards Minimum Wage
- Tips and service charges do not count towards meeting NLW/NMW. They’re on top of pay and cannot be used to “top up” wages to the legal minimum.
- Most benefits in kind (meals, cars, childcare vouchers) don’t count. The one exception is the accommodation offset (see below).
The Accommodation Offset (Important For Hospitality, Agriculture & Care)
If your employer provides accommodation, they can count up to £10.66 per day (£74.62 per week) towards minimum wage calculations.
- If they charge more than the offset, the excess is treated as a deduction from pay for minimum wage purposes (which can push pay below the legal minimum).
- If they charge less or nothing, it doesn’t reduce minimum wage pay.
What This Looks Like In Real Pay (Illustrative)
Below are pre-tax examples to help you sanity-check payslips. Actual take-home depends on tax/NI, pension, overtime, shifts, and deductions.
| Age/Category | Hourly | Approx weekly (40h) | Approx monthly (40h) |
|---|---|---|---|
| 21+ (NLW) | £12.21 | ~£488.40 | ~£2,116.40 |
| 18–20 | £10.00 | £400.00 | ~£1,733.33 |
| 16–17 | £7.55 | £302.00 | ~£1,308.67 |
| Apprentice | £7.55 | £302.00 | ~£1,308.67 |
(40 hours × 52 weeks ÷ 12 months; for 35 hours, the 21+ NLW equates to ~£1,851.85/month before tax.)
How To Check You’re On The Right Rate
- Confirm your age band & status (apprentice vs non-apprentice).
- Check your pay reference period (weekly or monthly). The new rate applies from the first pay period that begins on/after 1 April.
- Work out your effective hourly rate (total qualifying pay ÷ qualifying hours). Training time, some standby/on-call and required travel time can count as working time.
- Exclude tips from the calculation; factor in uniform/equipment deductions and accommodation offset where relevant.
If You’re Underpaid: What Happens
- Employers must repay arrears and can face financial penalties up to 200% of underpayments, capped at £20,000 per worker. The government may also name non-compliant employers publicly.
For Employers: Your September 2025 Checklist
- Audit payroll to ensure everyone aged 21+ is on £12.21 or more and younger bands and apprentices are on the correct rates.
- Double-check deductions (uniforms, travel between sites, etc.) don’t pull effective pay below the minimum.
- Review accommodation charges against the £10.66/day offset and adjust where needed.
- Verify pay reference periods so the April 2025 rise was applied from the first new period.
What Could Change Next?
The Government’s 2025 remit to the Low Pay Commission asks for recommendations on rates that should apply from April 2026, with a stated aim of reducing age-band differences further over time.
Expect any next legal change to start in April 2026, not in late 2025.
Despite some confusing headlines, there is no separate September 2025 minimum-wage rise.
The only statutory changes this year took effect on 1 April 2025, and those same rates — £12.21 for 21+, £10.00 for 18–20, £7.55 for 16–17 and apprentices, plus the £10.66/day accommodation offset — remain the law in September 2025.
If you’re a worker, check your age band, pay reference period, deductions and accommodation arrangements, and remember that tips don’t count towards the legal minimum.
If you’re an employer, ensure your payroll and policies reflect the April 2025 rates and be ready for April-cycle updates going forward (with the April 2026 round guided by the LPC).
Staying accurate now prevents costly arrears and penalties later — and ensures workers receive the fair pay they’re entitled to.
FAQs
No. The current legal rates started 1 April 2025 and still apply in September. The UK usually updates rates each April.