National Minimum Wage and National Living Wage Rates from April 2025

1. National Minimum Wage and National Living Wage

The minimum wage a worker gets depends on their age. The top tier of £12.21 is given to workers aged 21 years and over and this is known as the National Living Wage.

The National Minimum Wage is paid to employees up until the age of 21. 

2. What Is Changing?

Minimum wage rates change on 1st April each year. 

As of 1^st April 2025:

• the National Living Wage (paid to employees who are 21 and older) will increase to £12.21
• the National Minimum Wage (paid to employees who aged between 18 and 20) will increase to £10.00.
• the National Minimum Wage (paid to employees aged between 16 and 17) will increase to £7.55.  This rate also applies to apprentices.

3. Actions an employer should take regarding changes to minimum and living wage rates

The increases are again substantial.

Therefore, employers must consider preparing early for this increase. They need to consider calculating their staffing costs using the new rates to establish any risks to profit margins. They can then assess how best to mitigate those risks i.e. cost cutting measures and increase in prices could help.

Businesses of all sizes can prepare for this new employment law by ensuring that their finance, payroll, and HR departments are fully aware of the new rates. This is especially important if you have or are planning to bring an apprentice on board or if your employees are paid an hourly as opposed to an annual salary.