The National Living Wage for those aged 21 and over will rise from 1 April 2025 to £12.21 to reflect the cost of living under Labour’s Plan to Make Work Pay.
The Government announced its acceptance of the Low Pay Commission’s (LPC) recommendations on the rates of the National Minimum Wage, including the National Living Wage. The increase of National Living Wage is expected to have the highest real value in the history of the UK’s minimum wage. The Government has stated that it’s the first step towards aligning the National Minimum Wage and National Living Wage to create a single adult wage rate.
The changes mean:
• The National Living Wage for those aged 21 and over will rise from £11.44 per hour to £12.21 per hour.
• The National Minimum Wage for 18 to 20 year olds rises from £8.60 to £10.00 per hour.
• The apprenticeship rate, and for 16 to 17 year olds rises from £6.40 per hour to £7.55 per hour.
The April 2025 rates represent the largest increase on record for 18 to 20 year olds in anticipation of the adult National Living Wage rate being extended to cover this age band in the future.
Key takeaways
From 1 April 2025 employers will be required to pay their employees at least the new minimum wage rates according to the employee’s age and employment status. It is essential for employers to stay informed about the latest National Minimum Wage and National Living Wage to avoid inadvertent breaches.
Employers will need to ensure that they are prepared for the wage increase costs and should pay careful attention to which employees will be affected by the increases. Check which employees will be affected by the changes so that you can calculate their new wages accurately and begin paying them the new rates at the right time.
Regularly reviewing pay practices and adjusting wages in line with current rates will help ensure compliance and prevent costly penalties or reputational damage.
For help and advice on this topic or related issues, please contact Chris Cook by calling 01727 798089 or email chris.cook@salaw.com.
