Minimum wage, holiday pay and sick pay

Whether you are starting your first UK job or making sure your payslip is correct, understanding your basic employment rights is essential. This guide explains the minimum wage you should be paid, the holiday leave you are entitled to, and the sick pay you can claim when you are unwell.

National Living Wage and minimum wage rates

The UK has legally enforceable minimum hourly pay rates that apply to all workers, regardless of whether you work full-time, part-time, on a zero-hours contract, or as a casual worker. These rates are set by the government each year following recommendations from the Low Pay Commission, an independent body that advises on wage levels.

Current rates from 1 April 2026

The National Living Wage is the term used for the highest minimum wage rate, which applies to workers aged 21 and over. Younger workers and apprentices are covered by the National Minimum Wage at lower rates. From 1 April 2026, the rates are as follows:

• Age 21 and over (National Living Wage): £12.71 per hour
• Age 18 to 20: £10.85 per hour
• Under 18 and apprentices in their first year: £8.00 per hour

These rates apply from the first day of the new tax year and are reviewed every April. Your employer cannot legally pay you less than these amounts, even if you have signed a contract agreeing to a lower rate. The minimum wage applies across England, Scotland, Wales, and Northern Ireland.

What counts towards your minimum wage pay

When calculating whether you are being paid the minimum wage, certain deductions and expenses can reduce your effective hourly rate below the legal minimum. Your employer is not allowed to make deductions for uniforms, tools, safety equipment, or other items required for your job if doing so pushes your pay below the minimum wage threshold. Similarly, unpaid working time such as arriving early for security checks, attending handover meetings between shifts, or travelling between job sites during work hours must be counted and paid at least at the minimum wage rate.

Holiday entitlement and pay

Almost all workers in the UK are entitled to paid annual leave under the Working Time Regulations 1998. The statutory minimum is 5.6 weeks of paid holiday per year. For someone working a standard five-day week, this equals 28 days. This entitlement applies whether you work full-time, part-time, or on irregular hours.

How holiday entitlement is calculated

For full-time employees working five days per week, the calculation is straightforward: you are entitled to 28 days of paid annual leave. For part-time workers, the entitlement is calculated pro rata by multiplying the number of days you work per week by 5.6. For example, if you work three days per week, your entitlement is 3 times 5.6, which equals 16.8 days of holiday per year.

If you work irregular or variable hours, your holiday can be expressed in hours rather than days. The formula is the number of hours you work per week multiplied by 5.6 weeks. Since January 2024, workers on zero-hours or irregular-hours contracts accrue holiday at a rate of 12.07 per cent of the hours they work in each pay period.

Bank holidays and your annual leave

Many people assume that bank holidays are automatically paid days off in addition to annual leave, but this is not the case. There are eight bank holidays in England and Wales, nine in Scotland, and ten in Northern Ireland. Your employer can choose whether to include these bank holidays within your 28-day statutory entitlement or grant them on top as an extra benefit. If your contract is silent on the matter, the default position is that bank holidays are included within the 28 days. This means if your employer gives you all eight bank holidays off, you would have 20 remaining days to take at times of your choice.

Employers can also require you to work on bank holidays if the needs of the business demand it. If you do work on a bank holiday, that day does not automatically attract additional pay unless your contract says so, but it should still count towards your overall entitlement.

Carrying over unused holiday

Normally, you must take your statutory holiday within the holiday year, which is defined in your contract. However, since 2024, employees can carry over some or all of their four-week core statutory entitlement into the next year if the employer has failed to recognise the right, give reasonable opportunity to take it, or inform the worker that untaken leave will be lost. The additional 1.6 weeks can be carried over if your employer agrees to it in your contract or company policy. Holiday also continues to accrue during sick leave, maternity leave, and paternity leave, and you are usually allowed to carry over any untaken leave in those circumstances.

Statutory Sick Pay

Statutory Sick Pay, commonly known as SSP, is the minimum amount your employer must pay you if you are too ill to work. Significant changes came into effect on 6 April 2026 under the Employment Rights Act 2025, making SSP more accessible and fairer for lower-paid workers.

Who is eligible for SSP

From April 2026, all employees are eligible for SSP regardless of how much they earn. The previous requirement that you had to earn at least £125 per week to qualify has been removed. This change extends SSP coverage to an estimated 1.3 million additional workers, many in part-time, casual, or lower-paid roles. To qualify, you must be classed as an employee for tax purposes, which includes anyone who has their tax paid automatically through PAYE, and you must have started work with your employer.

How much SSP you receive

SSP is now paid from the first day of sickness absence. The previous rule requiring you to wait three unpaid waiting days before SSP kicked in has been abolished. The amount you receive is the lower of two figures: either £123.25 per week, or 80 per cent of your average weekly earnings. For most employees, this means you will receive the flat rate of £123.25 per week. However, if your average weekly earnings are less than £154.06 per week, you will receive 80 per cent of your actual earnings instead.

SSP is paid for up to 28 weeks during a continuous period of sickness. It is paid through your normal payroll and is subject to tax and National Insurance deductions just like your regular wages. Your employer can pay you more than the statutory minimum if your contract includes a more generous sick pay scheme, often called occupational or contractual sick pay.

Reporting sickness to your employer

You must tell your employer that you are sick within any deadline they have set, or within seven days if there is no specific deadline in your contract. For absences of seven calendar days or fewer, you can self-certify your sickness without needing a doctor's note. Your employer cannot insist on a fit note for short absences. If you are off sick for more than seven days, you will need to provide a fit note from your GP or another medical professional to verify your absence.

What to do if you are underpaid

If you believe your employer is paying you less than the minimum wage, not giving you your full holiday entitlement, or withholding Statutory Sick Pay, there are clear steps you can take to resolve the issue.

Check your pay first

Start by reviewing your payslips carefully. The government provides a free online National Minimum Wage and Living Wage calculator on the Check Your Pay website that can help you work out whether you are being paid correctly. Make a note of any discrepancies, including dates, amounts, and the hours you worked.

Speak to your employer

In many cases, underpayment is the result of a mistake rather than deliberate wrongdoing. If you feel comfortable doing so, raise the issue with your employer or your payroll department first. Explain what you have found and ask them to correct it. Keep a written record of your conversation, including emails or letters.

Get advice from ACAS

ACAS, the Advisory, Conciliation and Arbitration Service, is an independent public body that provides free and impartial advice to employees and employers. You can call the ACAS helpline on 0300 123 1100 for confidential advice on your pay and rights at work. ACAS can help you understand whether you have a valid complaint and what your options are for resolving the dispute.

Report underpayment to HMRC

If speaking to your employer does not resolve the problem, or if you do not feel able to raise it with them directly, you can report underpayment to HM Revenue and Customs. HMRC is responsible for enforcing the National Minimum Wage and National Living Wage laws. You can complete an online complaint form on the gov.uk website, which takes around five minutes. You can report anonymously, and your details will not be shared with your employer. You can also report a former employer even if you no longer work for them.

If HMRC investigates and finds that you have not been paid the minimum wage, they can order your employer to pay back up to six years of arrears. They can also issue fines of up to £20,000 per underpaid worker, take criminal legal action, and publish the names of offending employers on a public naming and shaming list.

Protection from unfair treatment

It is illegal for your employer to treat you unfairly or dismiss you because you have complained about being underpaid or because you have reported them to HMRC. If you experience negative treatment as a result of raising a pay issue, you may have a claim for automatic unfair dismissal or detriment, and you should seek advice from ACAS or a legal adviser as soon as possible.

Knowing your rights around pay, leave, and sick pay helps you protect yourself in the workplace and ensures you receive what you are legally owed. If in doubt, always check your payslip, speak up, and seek advice from the free resources available to all workers in the UK.