From 1^st April 2025, the UK’s National Living Wage (NLW) and National Minimum Wage (NMW) rates will increase. Employers must ensure compliance with the new rates to avoid penalties, while employees should be aware of their updated entitlements.

Rates from 1^st April 2025:

• National Living Wage (age 21and over): £12.21 per hour
• Age 18-20: £10.00 per hour
• Under 18: £7.55 per hour
• Apprentices: £7.55 per hour (applies to apprentices aged under 19 or those aged 19+ in the first year of their apprenticeship. After the first year, apprentices aged 19 and over must be paid the minimum wage for their age group.)

What This Means for Your Business:

With the upcoming wage increases, businesses need to ensure that their payroll systems are updated to reflect the new rates and compliance remains crucial. Failing to meet legal requirements can result in financial penalties and reputational damage. Employers should review current pay structures, communicate changes with staff to ensure transparency and seek professional advice if they are unsure about their obligations.

If you need guidance on employment law or payroll compliance, our dedicated Employment Law team are here to help.