National Minimum Wage set to increase from this date – what you need to know

A significant pay rise is on the horizon for many Brits this year, following Labour’s autumn Budget. Chancellor Rachel Reeves announced last year an increase to both the National Living Wage and National Minimum Wage in an effort to ensure salaries are fair.

The latter refers to the absolute minimum hourly wage that ‘almost all’ workers are entitled to, while the National Living Wage, which is higher, applies to adults over 21 years old. Apprentices and those aged 16 to 17 will see the largest increase in minimum pay from £6.40 to £7.55 per hour, a move worth 18%.

Additionally, 18 to 20-year-olds will also benefit from a £1.40 increase, marking the with their minimum wage set to be £10 per hour. The final group, those over 21, will receive a 6.7% pay boost worth 77p, raising the National Living Wage to £12.21 per hour – equating to an extra £1,400 annually.

All changes will come into effect from April 1, 2025 and are expected to impact more than three million workers. A full list of the changes is outlined below:

• Over-21s: £11.44 an hour to £12.21 an hour (6.7% increase)
• 18 to 20: £8.60 an hour to £10 an hour (16.3% increase)
• 16 to 17: £6.40 an hour to £7.55 an hour (18% increase)
• Apprentice: £6.40 an hour to £7.55 an hour (18% increase)

After the announcement in October, Chancellor Rachel Reeves said: “This Government promised a genuine living wage for working people. This pay boost for millions of workers is a significant step towards delivering on that promise.”

Deputy Prime Minister added: “A proper day’s work deserves a proper day’s pay. Our changes will see a pay boost that will help millions of lower earners to cover the essentials as well as providing the biggest increase for 18–20-year-olds on record.”

Can I check if I’m being underpaid?

The Government urges Brits to utilise its to verify they’re receiving the correct pay. To do so, you’ll need to input details such as your age, how often you’re paid, your working hours, wage amount and other relevant factors.

Employees can also use this tool to determine if their employer owes them any back payments from the previous year due to underpayment. For who have similar concerns about potential underpayments, there’s a separate calculator available for their use.

What jobs aren’t covered by the National Minimum Wage?

has outlined 15 jobs that are not entitled to the National Minimum Wage or National Living Wage. These include the following:

1. Workers on government pre-apprenticeships schemes
2. Members of the armed forces
3. Prisoners
4. People working on a Jobcentre Plus Work trial for up to 6 weeks
5. People who are volunteers or voluntary workers
6. People shadowing others at work
7. Company directors
8. Self-employed people running their own business
9. People living and working in a religious community
10. Workers younger than school leaving age (usually 16)
11. People on the following (EU) programmes: Leonardo da Vinci, Erasmus+, Comenius
12. Family members of the employer living in the employer’s home
13. Workers on a government employment programme, such as the Work Programme
14. Higher and further education students on work experience or a work placement up to one year
15. Share fishermen

Its website adds: “Employers who offer internships (sometimes called ‘work placements’ or ‘work experience’) should check if the person is entitled to the minimum wage.”