Published: April 2025

From 1 April 2025, the UK Government has implemented new National Minimum and Living Wage rates, following recommendations from the Low Pay Commission (LPC). These changes aim to support workers amid rising living costs and ensure fair pay across the board.

📊 Updated Rates (Effective from 1 April 2025)

• 💷 National Living Wage (21+):
  Increased from £11.44 to £12.21 per hour
• 👥 National Minimum Wage (Ages 18–20):
  Increased from £8.60 to £10.00 per hour
• 🏡 Accommodation Offset:
  Increased to £10.66 per day

📌 Key Details to Note

• Effective Date:
  The new rates apply to pay periods starting on or after 1 April 2025.
• Recommended by the LPC:
  The Low Pay Commission, an independent body advising the government, recommended the increases based on inflation forecasts and the cost of living.
• Government’s Commitment:
  The government aims to ensure the NLW remains at least two-thirds of median hourly earnings, keeping pace with economic changes.
• Penalties for Non-Compliance:
  Employers who underpay staff may face penalties of 200% of the underpaid amount, up to a maximum of £20,000 per worker.

✅ What Employers Should Do Now

• Review your current pay structure
• Ensure payroll systems are updated to reflect the new rates
• Communicate changes to employees
• Seek guidance if unsure about compliance