Increases to the National Living Wage (NLW) and the National Minimum Wage (NMW) took effect from 1 April.
The NLW increased by 6.7% and the NMW will rise by as much as 18% depending on the category of the worker.
The NMW is the minimum amount per hour workers are entitled to be paid by law. Different rates apply depending on the category of the worker.
The apprenticeship rate applies to apprentices under 19 or 19 and over in the first year of apprenticeship. The NLW applies to those aged 21 and over.
NLW 18-20 16-17 Apprentices
From 1 April 2025 £12.21 £10.00 £7.55 £7.55
Peter Bickley, Technical Manager – Employer Taxes at the Institute of Chartered Accountants in England and Wales (ICAEW), said: ‘Although the rise in the minimum wage will be welcomed by many workers, it presents a further challenge for employers already facing significant changes from April 2025, not least the increase in the rate of, and secondary threshold for employers’ National Insurance contributions, albeit that the bigger employment allowance should help small employers.
‘Employers must ensure that they continue to comply with the requirements as it is criminal offence not to pay someone the minimum wage.’
02/04/2025
View all >
08/10/2025
MTD for ITSA exemption applications
HMRC has opened up a service for landlords and self-employed to apply for exemption from Making Tax Digital (MTD) for Income Tax phase one.
READ MORE
HMRC to resume taking tax from accounts
HMRC has resumed its programme allowing direct recovery of money from debtors’ bank accounts.
Long-term sickness blighting UK economy
The UK must tackle its status as the sick man of the G7 if it wants to grow the economy, warns the British Chambers of Commerce (BCC).
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.