The current national minimum wage rates (applicable from 1 April 2025) mean that both 16 and 17-year-olds are entitled to a National Minimum Wage of £7.55 per hour. This applies whether working part-time alongside studies or fully immersing themselves in full-time employment. Keep in mind that if someone earns more than £123 per week National Insurance contributions will be deducted from earnings.
For those aged 16 and entering the working world it can feel pretty daunting as they enter into unknown territory. As they progress into adulthood and the world of work, they should take time to understand their rights when it comes to pay.
Understanding the details of the UK’s National Minimum Wage and National Living Wage rates can be challenging for both employers and employees alike. This article aims to provide information on minimum wage for 16 year olds and other relevant age brackets, including entitlements and employer responsibilities, plus help to clarify these aspects of UK employment law.
Table of Contents
Key Points to Note About 2025/2026 Wage Rates
Every year the rates for the National Living Wage and Minimum Wage undergo revisions that apply from April 1st to March 31st. Here’s what young people can expect to be paid during the period from 2025 to 2026:
- Those aged 21 or above, receive a minimum wage of £12.21 hourly rate
- For individuals aged between 18 and 20 years old the wage is a £10.00 minimum hourly rate
- People under 18 will receive a minimum of £7.55 (which is also the same rate for apprentices)
Click here to see more minimum wage rate details from the government website.
Once a person turns 21, the National Living Wage will come into effect which means they’ll be entitled to a minimum of £12.21 per hour.
If you compare the rates in this scale you’ll notice that they increase as people gain experience and responsibilities in both life and work. Some employees may opt to pay a higher hourly rate called the real living wage (overseen by the Living Wage Foundation) which is intended to reflect everyday costs in London and the UK.
Keep in mind that the rate for 16 to 17-year-olds is the lowest because it’s meant for those who are just starting out in the workplace and serves as a foundation, for earning potential in the future.
Having an understanding of how wages will progress over time can give workers insight and some incentive when considering their career path ahead.
Apprentice Rate vs. Part-Time Rate
There are two main categories to be aware of: the apprentice rate and the part-time rate. Both of these have distinct guidelines and implications.
Explanation of the Apprentice Rate and Part-Time Rate for 16-Year-Olds
For those working part-time, the rate is clear cut but it doesn’t come with the added advantage of education and skill development offered by apprenticeships.
At 16, if a person finds themselves in an apprenticeship, the wage structure will be slightly different because they’re under 19 or in the first year of an apprenticeship. When a person is an apprentice they’ll be earning money, but the main goal is to gain valuable skills and knowledge to enhance their future career prospects.
On the other hand, if a person is working part-time and not enrolled in an apprenticeship they will earn the rate of £7.55 per hour. This type of employment is usually done alongside their studies or other commitments. It’s an arrangement where they work and get paid without any component tied to their job.
The type of employment a person has plays a role in determining their pay structure and responsibilities.
The Role of Acas and Other Government Bodies in Enforcing Minimum Wage Laws
The Advisory, Conciliation and Arbitration Service (Acas) play a part in the employment landscape. Acas provides unbiased information and advice to both employers and employees regarding relations and employment law including minimum wage requirements. Beyond being a body Acas also has the authority to mediate disputes between employees and employers ensuring implementation of the law.
Other relevant authorities include Her Majesty’s Revenue and Customs (HMRC) which is responsible for enforcing minimum wage legislation. HMRC has the power to conduct business inspections, issue notices for underpayment, and impose financial penalties for noncompliance. These institutions work diligently behind the scenes to protect the rights of workers.
Here’s how anyone can get in touch for information or if they have any concerns regarding an employment situation, especially relating to wages…
1. Acas Helpline
For advice and guidance, reach out to the Acas helpline at 0300 123 1100<. They will assist employees in handling the issue with their employer and provide steps to resolve it.
2. HMRC Complaints
For those who wish to file a complaint, about underpayment and employers not meeting their legal requirements, there is the option of contacting HMRC or through their helpline. HMRC possess the authority to investigate employers and impose penalties if necessary.
3. Direct Contact
In cases where a workplace might have its own dispute resolution procedure, it is recommended to try and have concerns addressed before seeking outside assistance.
4. Online Resources
Both Acas and HMRC offer resources that provide valuable information on minimum wage laws and employee rights. These resources are easily accessible for information when needed.
By understanding these authority’s roles and knowing how to contact them employees are better prepared to navigate any issues related to minimum wage and employment while ensuring that they are informed and protected.
Rights and Responsibilities
Understanding rights and responsibilities is crucial for those starting a job at 16. It goes beyond earning money; it’s about young people navigating the complex world of employment law and taxation to make the most out of their early work experiences.
Once a person earns more than £123 per week, certain deductions like PAYE (Pay As You Earn) and National Insurance come into play.
PAYE refers to the system used by employers to deduct Income Tax and National Insurance contributions before paying wages.
National Insurance is a type of tax that helps fund state benefits and services such as the NHS.
Any 16 year old will notice these deductions on their payslip. It is within their rights to question any amounts that they believe have been calculated incorrectly.
Impact on Future Employment and Career
Starting a career at the age of 16 is akin to laying the building blocks for a long and potentially fulfilling professional journey. Recognising the significance of employment choices, in shaping future opportunities can empower young people to make more informed decisions.
The idea of national minimum wage goes beyond protecting workers from being taken advantage of; it also establishes a financial foundation that allows them to focus on developing skills and a career.
The National Minimum Wage acts as a safety net and ensures that people are legally entitled to receive a specific wage based on their age and experience. This financial stability enables young people to explore career paths, pursue further education or even save for future endeavours without the immediate pressure of making ends meet.
Minimum wage laws aim to create an opportunity platform where all young workers can grow, learn and eventually transition into higher-paying positions as they gain more experience and skills.
By understanding these aspects of starting employment early on, young people can have a more nuanced perspective on the opportunities available to them. Whether they decide to pursue an apprenticeship or work part-time, each option has its advantages that can benefit them in the long term.
Parents’ and Guardians’ Role
Parents and guardians play a role in shaping a young worker’s understanding of employment when they secure their first job. The intricacies of wage laws and taxation can
Supporting Comprehension of Minimum Wage Laws
Grasping the details of the National Minimum Wage, PAYE and National Insurance deductions can be intimidating for young workers. Parents and guardians have an opportunity to demystify these concepts.
Whether it involves sitting down for discussions on how payslips function, or explaining the distinction between net pay, these teaching moments are crucial. They not only help young workers anticipate payday but also educate them about their financial rights and responsibilities.
Navigating Employment Options
A 16-year-old may be enticed by immediate income without considering long-term benefits like skill development or career advancement. Parents and guardians can act as sounding boards helping young workers weigh the pros and cons of employment choices, such as apprenticeships versus part-time positions or even being self-employed. This guidance can be instrumental, in steering them towards options that align with both needs and future aspirations.
Parents and guardians have a wealth of life experience that can offer advice and support to young workers. They can help them understand workplace aspects like work contracts and the implications of employment arrangements, such as zero-hours contracts. Emotional support and encouragement from parents are also crucial as young workers embark on their steps into the working world.
The guidance and support provided by parents and guardians are invaluable, for workers as they navigate the complex landscape of employment laws, opportunities and choices. They serve as a foundation enabling 16-year-olds not only to earn but also to learn and grow in their early career journeys.
Tips For A Young Person To Maximise Income
Starting a career at the age of 16 provides benefits beyond just working regular hours and is a chance to make the most out of earnings and opportunities. While earning money can be exciting for new earners, it’s essential for them to handle their income responsibly.
Keep Track of Work Hours
When young people are just starting out, it’s crucial for them to maintain a record of their hours worked. This is important, especially if they were to ever come into conflict over how much they are owed by an employer.
Whether they use a time-tracking app or manually note down their hours, having a clear log ensures that they receive proper payment at the correct current rates. This information should be kept safe and readily available to demonstrate to an employer the days and times that the employee was working.
Invest in Further Training
Although young people may currently earn minimum wage, investing in training can pave the way for higher-paying positions in the future. They should seek out training programs, workshops or even online courses that can enhance their skills and make them more marketable. Some employers may even offer support by covering the costs of programs as they recognise the value they bring to their workforce.
Stay Informed About Your Employment Rights
Being young and relatively inexperienced should not equate to being uninformed about rights. Employees should familiarise themselves with their rights at work, such as the regulations for minimum wage breaks and when they should receive overtime pay.
It’s essential for an employee to know these things because it gives them power and allows them to advocate for themselves in the workplace.
Conclusion: Empowering the Next Generation of Workers
Young workers aged 16 need to know their rights, entitlements and employer obligations. Acas and HMRC play important roles in the enforcement and mediating of minimum wage laws. Additionally, it’s important that all workers, regardless of age (but especially 16-year-olds), keep abreast of workplace regulations and employment conditions.
Parents and guardians play a role in educating young workers about employment laws and helping them make informed decisions about their career paths. Skills like budgeting understanding payslips and recognising work-related deductions are crucial for the development of young adults.
As young people embark on their journey, they need to remember that knowledge is their greatest ally. By arming themselves with it ensures they receive what they are entitled to and are potentially on the path, towards a prosperous and rewarding career.
