April 2025 minimum wage increases confirmed

Government announces new minimum wage rates

The Government has confirmed increases to both the NLW and NMW rates, which will come into effect on 1 April 2025. These changes, recommended by the Low Pay Commission (LPC), aim to align minimum wages with inflation trends and meet the broader goal of reaching at least two-thirds of median earnings. While the increases bring notable benefits to workers, particularly those in younger age groups, they also present funding challenges for employers as they work to absorb higher wage costs amidst broader economic pressures.

From 1st April 2025 there will be:

• a 77p, or 6.7 per cent, increase to the NLW for those aged 21 and over (from £11.44 to £12.21 per hour)
• a £1.40, or 16.3 per cent, increase for those aged 18-20 (from £8.60 to £10.00 per hour)
• a £1.15, or 18 per cent, increase for those aged 16-17 and apprentices (from £6.40 to £7.55)

The April 2025 rates represent the largest increase on record for the 18-20 year old rate, in anticipation of the adult NLW rate being extended to cover 18-year-olds in the future.

Key takeaways

It is essential for employers to stay informed about the latest NMW and NLW rates to avoid inadvertent breaches.  This is particularly the case given that the Government has renewed its commitment to name and shame employers who fall foul of minimum wage law.  Regularly reviewing pay practices and adjusting wages in line with current rates will help ensure compliance and prevent costly penalties or reputational damage.

For more information or advice, please contact Michael Halsey in our Employment team on 020 7665 0842, or complete the form below.