National Living Wage Increase Update

In October, the LPC set out their recommendations for the NLW and NMW from April 2025, taking into account factors such as the cost of living, average wage increases and the rate of inflation.

What are the rates of National Living Wage and National Minimum Wage from April 2025?

The Government has recently announced the rates of the National Living Wage (NLW) and NMW which will come into force from April 2025, accepting the recommendations of the Low Pay Commission (LPC) in full.

From 1 April 2025 there will be:

• A 77p, or 6.7% increase to NLW for those aged 21 and over (from£11.44 to £12.21 per hour);
• A £1.40, or 16.3% increase for those aged 18-20 (from £8.60 to £10 per hour); and
• a £1.15, or 18 per cent, increase for those aged 16-17 and apprentices (from £6.40 to £7.55 per hour).

While all of the increases are above inflation, there has been a notable increase in the rates for younger workers consistent with the Government’s stated aim of standardising rates for all workers.

This combined with increases in employer national insurance rates may prove to be unwelcome news for employers, though will be welcomed by the lower paid.

How can we help?

Our Employment Law team are on hand to help with any adjustments you need to make to remain compliant, such as employment contract reviews.

If you need our assistance, with this, or any of the proposed legislative changes outlined in the Employment Bill, please get in touch.