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The minimum wage for restaurants and takeaways ​

Everyone who works for you as a worker must be paid at least the minimum wage for every hour they work, however small your business. Part-time, casual and agency staff, trainees and people on probation are all covered, and no contract can set pay lower: a worker cannot agree to less. The government’s checklist of common causes of underpayment includes counting tips as pay, deductions for things needed for the job, unpaid time added to a shift or spent training, and missing the April increase. This guide covers the rates from 1 April 2026 and the rules behind them, for a restaurant, café, pub or takeaway.

The rates from 1 April 2026 ​

Age or categoryHourly rate from 1 April 2026
21 and over (National Living Wage)£12.71
18 to 20£10.85
Under 18£8
Apprentice£8
  • Apprentices get the apprentice rate if they are under 19, or 19 or over and in the first year of their apprenticeship; after that, the rate for their age.
  • Birthdays. At 18 and at 21 a worker moves to the next rate, so keep an accurate date of birth for everyone.
  • New rates start on 1 April every year. A higher rate must be paid from the first pay reference period (usually how often you pay) that begins on or after the day it applies.

The rates for April 2027 had not been announced when this guide was checked: see the common questions below.

Tips, service charges and premiums do not count ​

In the government’s words, “Tips, gratuities, service charges and cover charges do not count towards minimum wage pay. This is regardless of whether they are paid through your payroll or are given direct to workers by customers or a tronc master.” The minimum wage has to come from wages, and by law all tips must also reach staff without deductions: see our guide to the tipping law and our guide to service charges and tips.

Nor do these count: the extra on top of the basic rate for overtime, nights, weekends or bank holidays, for staff paid by the hour; allowances and refunds of expenses; your contributions to their pension (see our guide to workplace pensions); and benefits in kind such as staff meals. Living accommodation is the only benefit that can count, and only up to a limit.

Deductions: uniform, meals and accommodation ​

Some deductions, and some payments staff make for the job, reduce pay for minimum wage purposes. Check pay after them, not before.

  • Uniform and tools. Deductions for items you require staff to wear “will always reduce minimum wage pay regardless of whether the purchase is made from you or a third party”. So do uniform or tools staff buy themselves, unless you refund them, and charges for cleaning or repairing a uniform you supply.
  • Staff meals. Deductions for meals may reduce minimum wage pay, even if the worker asked for them or agreed: “The onus here is on you”.
  • Accommodation. From April 2026 the offset is £11.10 a day or £77.70 a week. Free accommodation adds that amount to pay for minimum wage purposes; a charge above it reduces pay by the difference.
  • Salary sacrifice also reduces pay, so you must make sure it does not “cause a worker’s pay to drop below minimum wage rates”.

The hours you must pay for ​

For staff paid by the hour, paid time includes time at the workplace and required to be available for work, and “it makes no difference whether or not you actually provide work for that time”. It also includes:

  • coming in early to prepare for the shift, team meetings and handovers;
  • time spent training;
  • standby or on call at or near the workplace, but not waiting at home;
  • travel from one work assignment to another, but not between home and work.

Rest breaks, holidays and sick leave are not working time, even if you pay for them.

Trial shifts. In the government’s view, someone working a trial lasting longer than one day is likely to be entitled to the minimum wage “in all but very exceptional circumstances”. A trial of a few hours may be reasonable if its purpose is to test the person; the longer it runs, the more likely pay is due.

Keep records for six years ​

Keep records showing that each worker was paid at least the minimum wage, for six years from the end of the pay reference period after the one they cover, and be able to produce one worker’s period in a single document. The burden of proof is on you, and failing to keep records is a criminal offence. The guidance advises recording the hours actually worked, pay, higher rates, tips and service charges, deductions, absences, training and each worker’s date of birth. A worker who believes they have been underpaid can ask in writing to see their records.

If you have underpaid ​

  • Pay the arrears. They are worked out at the current rate, so they grow when rates rise. If you find them, pay them and declare them to HMRC yourself, there is no naming or penalty for arrears HMRC accepts, other than in exceptional cases.
  • Inspections. “HMRC enforces the minimum wage on behalf of the Fair Work Agency (FWA)”, which began operating on 7 April 2026. Its officers “have the right to carry out checks at any time”, and can investigate if a worker complains.
  • Penalty. A notice of underpayment can add a penalty of “up to 200% of the value of the minimum wage arrears, up to a maximum penalty £20,000 per worker”, halved if you fully comply within 14 days.
  • Naming and prosecution. Employers who underpay “might be named by the government”, and deliberately not paying can lead to an unlimited fine.

What else is changing ​

Under the Employment Rights Act 2025, Statutory Sick Pay has had no lower earnings limit and no waiting period since 6 April 2026. From 30 October 2026 employers must take “all reasonable steps” to prevent sexual harassment of their employees, and must not permit their harassment by third parties. From 1 January 2027 the qualifying period for unfair dismissal falls to six months. The rights to guaranteed hours, reasonable notice of shifts and short-notice payments are not yet in force: the government lists them for 2027 and says “timings will be updated after consultation”.

Common questions ​

Can tips or the service charge top staff up to the minimum wage? No. However they are paid, they never count. Pay the minimum from wages and pass tips on in full.

Can I deduct the cost of uniform or staff meals? A uniform deduction always reduces pay for minimum wage purposes, and a meal deduction may. Check that pay after the deduction still meets the minimum wage for every hour worked.

Do I pay for training or pre-shift preparation? Yes, both are working time. A trial lasting longer than one day is likely to need paying too.

What is the minimum wage from April 2027? Not announced yet. The Low Pay Commission has been asked to recommend the rates “to come into effect on 1 April 2027”, including a new accommodation offset, and to advise by the end of October 2026. The Budget is on 28 October 2026. The government also wants the 18 to 20 rate brought into line with the National Living Wage, at a pace the Commission decides. We will update this guide when the new rates are announced; until then, the rates from 1 April 2026 apply.

What happens if HMRC finds I underpaid? You pay the arrears at the current rate, can face a penalty of up to 200% of them (capped at £20,000 per worker, halved if you comply within 14 days) and may be named.

A short checklist ​

  • Every worker on at least the rate for their age from 1 April 2026, with dates of birth on file for the 18th and 21st birthdays.
  • Tips, service charges and premiums left out when you check pay.
  • Pay checked after deductions for uniform, meals, accommodation and salary sacrifice.
  • Pre-shift preparation, handovers, meetings and training paid; trial shifts kept short, or paid.
  • Records of actual hours, pay, tips and deductions, kept for six years.
  • A reminder to check the April 2027 rates once they are announced.

Sources ​

This guide is general information, not legal advice. For your own staff, use the government’s minimum wage calculator for employers or call the Acas helpline.