As you know, the UK Government has confirmed that the National Living Wage (NLW) will increase to £12.21 per hour from April 2025. This change aligns with the government’s commitment to ensuring that wages continue to reflect the cost of living and economic conditions.
Key Updates:
National Living Wage Increase: The NLW will rise from its current rate to £12.21 per hour benefiting millions of low-paid workers across the UK.
Significant Increase for 18-20 year olds: The government continues its plan to close the gap between the 18-20 rate and 21+ rate with a 16.3% increase.
Highest Increase for 16-17 year olds & Apprentices: Both groups will see an 18% increase in their minimum wage, the largest percentage rise among all categories.
| 21 and over | 18 to 20 | Under 18 | Apprentice | |
|---|---|---|---|---|
| April 2024 (current rates) | £11.44 | £8.60 | £6.40 | £6.40 |
| April 2025 | £12.21 | £10.00 | £7.55 | £7.55 |
| Increase | £0.77 | £1.40 | £1.15 | £1.15 |
| Percentage Increase | 6.7% | 16.3% | 18% | 18% |
What this means for employers:
You must ensure your payroll systems are updated to reflect the new rates by April 2025. If you employ younger workers you should budget for the sharper increase in wages for 18-20 year olds, 16-17 year olds and apprentices.
If you have any questions or need further clarification on how these changes impact your business feel free to contract our HR team
