The Government has accepted the Low Pay Commission’s (LPC’s) recommendations for the rates of the National Living Wage (NLW) and National Minimum Wage (NMW) to apply from April 2025. The figures are the first produced by the LPC since its remit was altered to take account of the cost of living, including expected trends in inflation up to March 2026.
The following rates apply from 1 April 2025:
|
Applies to |
Old rate |
New rate |
|
|
National Living Wage |
Workers aged 21 and over |
£11.44 per hour |
£12.21 per hour |
|
National Minimum Wage |
Workers aged 18 to 20 |
£8.60 per hour |
£10.00 per hour |
|
National Minimum Wage |
Workers aged 16 and 17 |
£6.40 per hour |
£7.55 per hour |
|
Apprentice rate |
Apprentices |
£6.40 per hour |
£7.55 per hour |
|
Accommodation offset |
Workers who are provided with accommodation by their employers |
£9.99 per day |
£10.66 per day |
The government aims to align the National Minimum Wage (payable to 18-20 year olds) and National Living Wage (payable to workers aged 21 and above) over time, creating a single adult wage rate.
The increases this year are substantial. This is a big hit for employers – especially when viewed alongside the other payroll changes made in the Autumn budget. From April 2025, the rate of employer’s NI contributions (NICs) will increase by 1.2 percentage points to 15%, and employers will start to pay NICs on employees’ earnings from £5,000, instead of the current £9,100 threshold.
Contact Jon Dunkley today for an informal chat, without obligation.
Contact Jon Dunkley
- [email protected]
- 01271 342268
