# payroll.minimum-wage-check

Whether the pay for one pay reference period meets the National Minimum Wage
or National Living Wage, and by how much it falls short if not.

**Everything is fixed at the start of the pay reference period.** GOV.UK's
guidance: "When the minimum wage rates change, the increase applies to the
first pay reference period starting on or after the date of any change ... The
same approach applies when a worker reaches a birthday that makes them
eligible for a higher minimum wage rate." So a monthly period starting 16 March
2026 uses the 2025 rates throughout, and a worker who turns 21 halfway through
a period stays on the 18-20 rate until the next one. Using the pay date, or the
age on the pay date, is the common mistake.

**Apprentice rate** (NMW Regulations 2015 reg 5): applies to an apprentice who
is under 19, or who is in the first 12 months of the apprenticeship. Pass
`apprenticeshipStart` for apprentices, null otherwise. When the apprentice rate
applies, the age rates do not (reg 4A(2)).

**Required pay** is `rate x minutes / 60` rounded **up** to the penny: pay in
whole pence meets the exact requirement only if it reaches that figure.

Age bands: 2023-24 had the National Living Wage from 23 and a separate 21-22
rate; from 1 April 2024 the National Living Wage starts at 21. A worker under 16
(below school leaving age in this simplification) is an error; the precise
school-leaving date differs across the UK and is the caller's to apply.

Not covered: what counts as pay or working time (salaried hours, sleep-ins,
the accommodation offset, deductions that reduce pay for minimum wage
purposes). Callers supply both numbers already adjusted.

Rates (per hour, from 1 April):

| Year | NLW | 21-22 | 18-20 | Under 18 | Apprentice |
|---|---|---|---|---|---|
| 2023 | £10.42 (23+) | £10.18 | £7.49 | £5.28 | £5.28 |
| 2024 | £11.44 (21+) | - | £8.60 | £6.40 | £6.40 |
| 2025 | £12.21 | - | £10.00 | £7.55 | £7.55 |
| 2026 | £12.71 | - | £10.85 | £8.00 | £8.00 |

Sources:
- GOV.UK, "National Minimum Wage and National Living Wage rates",
  https://www.gov.uk/national-minimum-wage-rates (current and previous rates)
- GOV.UK, "Calculating the minimum wage: pay counted during a pay reference period",
  https://www.gov.uk/guidance/calculating-the-minimum-wage/calculating-the-minimum-wage
- The National Minimum Wage Regulations 2015 (SI 2015/621) regs 4, 4A, 5, 6,
  https://www.legislation.gov.uk/uksi/2015/621
- The National Minimum Wage (Amendment) Regulations 2026 (SI 2026/357),
  https://www.legislation.gov.uk/uksi/2026/357/made
- GOV.UK, "Rates and thresholds for employers" 2023-24 to 2026-27,
  https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027