The National Minimum Wage (NMW) is the minimum pay per hour workers of school leaving age but under 25 are entitled to by law. It is regulated by the Low Pay Commission and reviewed each year by the government. The National Living Wage (NLW) in simple terms is the new minimum wage rate for those aged 25 and over. It is basically a rebranding of the NMW.
It is increased each year in April as part of the Budget process. The rate will depend on a worker’s age and if they are an apprentice.
From April 2019 the minimum wage for a 25 year old will increase to £8.21 per hour and the apprentice wage will increase to £3.90 per hour for the under 19s or those in their first year of the apprenticeship.
Some groups of workers are not entitled to the NMW or the NLW these include company directors, volunteers and members of the armed forces together with self-employed individuals. HM Revenue & Customs (HMRC) can take employers to court for not paying the NMW or NLW.