The UK government announced significant increases to the National Minimum Wage (NMW) and National Living Wage (NLW), effective from April 1, 2025. These changes aim to boost earnings for over three million workers across various age groups, which are outlined below.
Although the increases were welcomed by employees and trade unions, employers and business federations have expressed concerns about the potential impact on recruitment plans and operational costs. The wage hikes coincide with increases in employer National Insurance Contributions (NICs), leading some businesses to consider measures such as reducing staff hours, altering employment contracts, or even downsizing.
Current NMW Rates
- Apprentices - £6.40hr
- Under 18’s - £6.40hr
- 18-20 yr - £8.60
- 21 and over - £11.44hr
NMW Rates from April 2025
- Apprentices - £7.55hr (18% increase)
- Under 18’s - £7.55hr (18% increase)
- 18-20 yr - £10.00hr (16.3% increase)
- 21 and over - £12.21 (6.7% increase)
As the NMW does not apply to certain groups of ‘workers’ and complications can arise in calculating NMW, employers are advised to seek professional advice to avoid breaching these Regulations. The HR Helpline is available to offer you the initial advice and consultancy services are available to meet all your drafting needs. Please call the HR Helpline.
