National Living Wage to Increase to £12.21

Angela Renwick
Associate
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The Chancellor, Rachel Reeves, has recently confirmed that the National Living Wage (which is currently the top rate of National Minimum Wage for those over 21 years old) will be increased from £11.44 per hour to £12.21 per hour from April 2025.

The government instructed the Low Pay Commission to include the cost of living in its calculations, which will result in a 6.7% increase in the National Living Wage.

However, a greater increase has been seen in relation to the National Minimum Wage for under-21-year-olds. The minimum wage for 18 to 20 year-olds will increase by 16.3% from £8.40 per hour to £10 per hour, and the minimum wage for 16 to 17 year-olds will increase by 18% from £6.40 per hour to £7.55 per hour.

Apprentices will also receive an 18% increase in their minimum wage, taking them from £6.40 per hour to £7.55 per hour.

Each year, the government set the National Minimum Wage and National Living Wage, which come into effect the following April. However, these rates are announced in advance to give employers the opportunity to prepare for the increase.

If you would like to discuss the implications of the announcement, or if we can provide support or assistance on any other employment law matters, please do not hesitate to contact a member of the team on 0141 331 5150.

Topics: National Living Wage