UK minimum wage set for April 2025 with percentage increase of up to 18%

There are now less than three weeks until many workers across London and the UK receive a boost in pay. National Minimum Wage (NMW) has been increased for every age bracket and will be implemented on Tuesday, April 1.

The Chancellor of the Exchequer, Rachel Reeves, announced the change during her maiden Autumn Budget speech in October, calling it a "significant step" towards creating a "genuine living wage" for working people. The final rates decided in partnership with the Low Pay Commission.

First-year apprentices and people under 18 will see the most noticeable hike in pay at 18 per cent. This means those earning the current NMW rate of £6.40 an hour will be now be on £7.55 an hour.

Anyone between the ages of 18 and 20 will be paid at least £10 an hour instead of £8.60 - an increase of 16.3 per cent and the largest ever recorded. However, the percentage increase for those over 21 is almost 10 per cent less than the bracket below at 6.7 per cent.

The hourly rate - known as the National Living Wage for over 21s - will now be £12.21 as opposed to £11.44. As such, someone working 40 hours a week will receive around £1953 before tax in their monthly pay check, where they would previously earn close to £1830.

It's estimated more than three million people in the UK will benefit from the change to National Minimum Wage.

Here's how the current and new rate compares:

The Labour Government is encouraging Brits to utilise its minimum wage calculator to verify they are receiving the correct wage as of next month. To do this, you'll need to provide details such as your age, pay frequency, working hours, wage amount and other factors.

Whilst a pay increase will be welcome news for many, the new higher rates are still lower than the £12.60-an-hour rate calculated by the Living Wage Foundation. This is currently paid voluntarily by 15,000 UK employers and aims to reflect the reality of food, housing, travel, and daily spending costs. Those living in London require an ever higher rate of £13.85 in order to live comfortably.

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