New employers: what you need to know about the National Minimum Wage
Taking on your first workers is a milestone moment for any new business. It’s important to pay your workers correctly from day one, as this helps build trust, demonstrates your commitment to treating workers fairly, and lays the foundations for a positive and productive working relationship.
The good news is there’s plenty of guidance and support available to help you get things right. Like HMRC’s free webinar for new employers on GoTo Stage – just search ‘National Minimum Wage new employers’ on the home page. This will tell you all you need to know, including information about; Payments & Deductions, Apprentices, what is classed as working time, salary sacrifice and Record Keeping.
National Minimum Wage (NMW) is more than just a rate, it’s a calculation
A worker’s hourly rate may be above the National Minimum Wage, but deductions, unpaid working time or other factors can still mean they are underpaid.
Here are some of the things to remember to make sure you get the calculation right.
1. NMW rates
These are the minimum hourly rates all businesses must pay workers in the UK. New Rates
The rates are updated every April, and it’s your responsibility to keep up with these changes to ensure your workers receive the correct pay.
| 21 and over | 18 to 20 | Under 18 | Apprentice* | |
| April 2026 | £12.71 | £10.85 | £8 | £8 |
*Apprentices are entitled to the apprentice rate if they’re in the first year of their apprenticeship or under 19 during their apprenticeship. Otherwise, they get the same rate for their age as other workers.
2. Not everything you pay counts towards the NMW
If a worker gets tips or shift premiums, or you refund their expenses, this is on top of their NMW pay. If you make deductions from pay for things like uniforms or training – or workers pay for these themselves – their hourly rate may fall below the NMW.
Look at the employer checklist on GOV.UK Here to make sure you don’t get caught out, or search ‘a checklist for employers’ on GOV.uk
3. Getting the NMW wrong isn’t just an admin issue
HMRC can carry out checks at any time. If you underpay your workers, you will have to repay arrears straight away, and you may;
- have to pay a penalty
- be publicly named by the government.
4. It’s important to keep records to show you’re paying the NMW correctly
Good record keeping helps demonstrate that you’re paying the National Minimum Wage correctly. It safeguards both you and your workers and can make any HMRC review much simpler. You must keep your records for 6 years.
More information
For general advice about NMW, you can call Acas who offer this free and confidentially. You can call the helpline on 0300 123 1100 or visit acas.org.uk – translation services are available.
Watch the webinar: Understanding National Minimum Wage – a guide for new employers | GoToStage.com
New employers: what you need to know about the National Minimum Wage
Taking on your first workers is a milestone moment for any new business. It’s important to pay your workers correctly from day one, as this helps build trust, demonstrates your commitment to treating workers fairly, and lays the foundations for a positive and productive working relationship.
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