The UK government has announced a significant increase in the National Living Wage (NLW), set to take effect from 1st April 2025. This change aims to enhance the earnings of low-paid workers and living standards across the country.
Changes to the National Living Wage
- New Rate The NLW for workers aged 21 and over will rise to £12.21 per hour, up from the current £11.44.
- Percentage Increase This adjustment represents a 6.7% increase and additional £0.77 per hour.
- Annual Salary Impact For a full-time worker, this increase equates to approximately £1,400 more per year.
Adjustments to the National Minimum Wage
In addition to the NLW changes, the National Minimum Wage (NMW) rates for younger workers will also see substantial increases:
- Ages 18-20: The hourly rate will rise from £8.60 to £10.00, marking a 16.3% increase.
- Ages 16-17: The rate will increase from £6.40 to £7.55 per hour, an 18.0% uplift.
- Apprentices: The apprentice rate will also go up from £6.40 to £7.55 per hour, reflecting an 18.0% increase.
These changes are based on recommendations from the Low Pay Commission (LPC), an independent body that advises the government on wage matters. The LPC’s goal is to ensure that the NLW reaches two-thirds of median earnings, aiming to provide fair compensation for the lowest-paid workers.
Baroness Philippa Stroud, Chair of the LPC, highlighted that while the NLW increase supports workers’ living standards, it also considers the economic pressures faced by employers. The LPC’s recommendations strive to balance fair wages with the need to maintain employment levels and economic growth.
You can read more on the Government website here
