New rates of the National Minimum and National Living wage will come into effect from April 1st 2025, and businesses are reminded to ensure they are prepared for payroll changes.
The new minimum rates of pay will see those aged 21 and over paid a National Living Wage of £12.21, a 77p increase on the previous rate. The National Minimum Wage, paid to those aged 18-20 will rise £1.40 to £10 per hour, while apprentices will receive a £1.15 per hour increase in their rate of pay, which rises to £7.55.
The new rates of pay have been recommended by the Low Pay Commission, which advises government on the level of the minimum wage. For the first time, these latest increases also take into account the cost of living.
From April 2025, the rates will be as follows:
| Category | NMW rate | Increase (£) | Percentage increase |
|---|---|---|---|
| National Living Wage (21 and over) | £12.21 | £0.77 | 6.7 |
| 18-20 Year Old Rate | £10.00 | £1.40 | 16.3 |
| 16-17 Year Old Rate | £7.55 | £1.15 | 18.0 |
| Apprentice Rate | £7.55 | £1.15 | 18.0 |
| Accommodation Offset | £10.66 | £0.67 | 6.7 |
From April 1st when new rates take effect, those working full time on the National Living Wage will receive a pay increase worth £1,400 a year, approximately £25 per week or £100 a month.
Alongside the rises in minimum rates of pay, businesses also will need to be prepared for an increase in Employers National Insurance Contributions which will also take effect this April.
Employees are advised to check their payslips in April to ensure their earnings reflect the changes using the calculator on the Check Your Pay campaign website.
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