Increases to NMW are coming in 2025 – Are you ready for the increase?

Recommendations of the Low Pay Commission have been accepted by the Chancellor of the Exchequer Rachel Reeves and has announced substantial increases in the rates of the National Living and Minimum Wage from April 2025.

The new rates which Employers will have to pay from April 1st 2025 are:  

• National Living Wage (payable to workers aged 21 and above) will be £12.21 per hour from last year’s rate of £11.44 
• 18 to 20 year-olds – from 8.60 to £10.00 per hour
• apprentices – from £6.40 to £7.55 per hour in their first year of apprenticeship or if they are under 19 years old
• The accommodation offset – from £9.99 to £10.66 per day.

This is the biggest increase to the National Minimum wage on record and is part of the government’s aim to ultimately align the National Minimum Wage and National Living Wage over time, creating a single adult wage rate.

Employers are reminded to check their employees contracts and current wage rates to ensure that where current rates will change in April 2025 that they make the changes from the 1st April 2025 so as to avoid any unlawful deduction of wage and any potential claim following it.