The NMW is the minimum amount per hour workers are entitled to be paid by law. Different rates apply depending on the category of the worker. The headline rate of the minimum wage is referred to as the NLW. This is paid to workers aged 21 and over.
Legislation has now been enacted which increases the amounts of the NMW and NLW for pay periods commencing on or after 1 April 2025, as shown below.
| Category of worker | 2025-26 hourly rate | 2024-25 hourly rate | Increase £ | Increase % |
|---|---|---|---|---|
| Aged 21 and above (NLW) | £12.21 | £11.44 | £0.77 | 6.7% |
| 18-20 year old | £10 | £8.60 | £1.40 | 16.3% |
| 16-17 year old | £7.55 | £6.40 | £1.15 | 18% |
| Apprentices* | £7.55 | £6.40 | £1.15 | 18% |
*Apprentices aged 19 or over who have completed the first year of their apprenticeship are entitled to the NLW/NMW applicable to their age group.
From 1 April 2025, the accommodation offset increases by £0.67 per day to £10.66 per day.
The increased rates were first announced at the Autumn Budget 2024 when the government confirmed it would accept the Low Pay Commission’s (LPC’s) recommendations.
The government estimates that the changes could benefit over 7m workers: 3m workers directly and 4m workers “from the positive spill-over impacts of the rate increases”.
Example
Anima works 35 hours per week and is paid the NLW. Her annual salary from April 2025 will be £22,222, an increase of just over £1,400.
The increases from April 2025 follow changes made in 2024, which were described by the Low Pay Commission as representing the “largest ever increase in the minimum wage in cash terms”. The government has set targets:
- for the NLW to not drop below two-thirds of median earnings; and
- to narrow the gap between the NMW rate for 18-20 year olds and the NLW, towards a long-term goal of achieving a single adult rate.
Peter Bickley, Technical Manager – Employer Taxes, ICAEW, said: “Although the rise in the minimum wage will be welcomed by many workers, it presents a further challenge for employers already facing significant changes from April 2025, not least the increase in the rate of, and secondary threshold for employers’ national insurance contributions, albeit that the bigger employment allowance should help small employers. Employers must ensure that they continue to comply with the requirements as it is criminal offence not to pay someone the minimum wage.”
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