Prior to the Budget on Wednesday 30th October 2024, the government had announced that the National Minimum Wage (NMW) would be increasing. Having delivered her first Budget, the Chancellor declared that over three million workers would benefit from the increases from April 2025, which are outlined below.
Although the increases were welcomed by employees and trade unions, employers and business federations warned that they may have to curtail their recruitment plans, especially after the accompanying employer National Insurance hikes.
Current NMW Rates
- Apprentices - £6.40hr
- Under 18’s - £6.40hr
- 18-20 yr - £8.60
- 21 and over - £11.44hr
NMW Rates from April 2025
- Apprentices - £7.55hr (18% increase)
- Under 18’s - £7.55hr (18% increase)
- 18-20 yr - £10.00hr (16.3% increase)
- 21 and over - £12.21 (6.7% increase)
As the NMW does not apply to certain groups of ‘workers’ and complications can arise in calculating NMW, employers are advised to seek professional advice to avoid breaching these Regulations. The HR Helpline is available to offer you the initial advice and consultancy services are available to meet all your drafting needs. Please call the HR Helpline.
