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 >
12/01/2026
Inheritance Tax reliefs threshold to rise
The level of the Agricultural Property Relief (APR) and Business Property Relief (BPR) thresholds will be increased from £1 million to £2.5 million, the government has announced.
READ MORE
Spring Statement set for 3 March 2026
The Spring Statement has been scheduled for 3 March 2026 by the Chancellor of the Exchequer Rachel Reeves.
Over 4,800 self assessment scams reported
More than 4,800 self assessment scams have been reported since February 2025, according to data released by HMRC.
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.