The National Minimum Wage (NMW) and National Living Wage (NLW) are set to increase this April, providing a significant boost to many employees amid ongoing cost-of-living challenges.
Here’s everything HR teams need to know:
What is the National Minimum Wage?
The NMW is the minimum hourly rate that UK businesses are legally required to pay their employees. The government reviews these rates annually, considering recommendations from the Low Pay Commission (LPC), which consults with businesses and trade unions to align wages with the cost of living.
National Minimum Wage vs. National Living Wage: What’s the difference?
The key difference between the two wage types is who they apply to:
- National Minimum Wage (NMW): Applies to workers under the age of 21.
- National Living Wage (NLW): Applies to all workers aged 21 and over.
Current and upcoming wage rates
Below are the minimum wage rates currently in place for 2024 and the new rates taking effect on 1st April 2025:
| Category | April 2024 | April 2025 |
| Age 21 and over (NLW) | £11.44 | £12.21 |
| Age 18 to 20 | £8.60 | £10.00 |
| Under 18 | £6.40 | £7.55 |
| Apprentices | £6.40 | £7.55 |
Key changes to note
- National Living Wage (NLW): Will rise from £11.44 to £12.21 per hour, a 6.7% increase.
- 18 to 20-year-old rate: This group will see a 16.3% increase, from £8.60 to £10.00 per hour.
- Under 18 and apprentices: Both groups will receive an 18.0% increase, with rates moving from £6.40 to £7.55 per hour.
These rates apply across England, Scotland, Wales, and Northern Ireland. All businesses, regardless of size, must comply.
How businesses benefit from increasing the minimum wage
- Attract top talent: Competitive wages enhance your business’s appeal in a crowded recruitment market.
- Reduce staff turnover: Higher wages can improve morale and job satisfaction, leading to lower turnover rates.
- Boost your reputation: Fair compensation practices enhance your company’s reputation, fostering customer loyalty and opening new business opportunities.
Stay on top of salary management with HR Planner
HR Planner simplifies salary management for SMEs. Our salary tracking feature allows you to monitor pay changes efficiently, ensuring compliance with the upcoming NMW and NLW increases.
For a free demo of our all-in-one, industry-leading UK HR system, call our expert team on 01252 636070 or email support@hrplanner.uk.