Minimum Wage Rate Increases 1st April 2025

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There is a legal right for all workers/employees to receive a minimum wage. The National Minimum Wage Act 1998 created this right. As from 1st April the hourly rates have increased once again.

Therefore, check your pay and ensure it conforms with the minimum rates. If you are an employer it is especially important that you check the pay of all workers and employees. There are a number of different remedies for those that are not being paid at least the minimum and the consequences for employers can be significant as back pay for up to two years can be claimed.

The full increases from 1 April 2025 are:

  • National Living Wage (age 21+) has increased by 6.7%, from £11.44 to £12.21 per hour.
  • National Minimum Wage (18-20) has a record increase of 16.2%, from £8.60 to £10 per hour.
  • National Minimum Wage (under 18) has increased 18%, to £7.55 per hour.

Claims that can be brought:

  • Unlawful deduction from wages claim in the Employment Tribunal.
  • Breach of contract claim in the County Court or Employment Tribunal.

It is not possible to agree with a worker/employee that they will be paid less. Any attempt to agree this will be void and a claim can still be brought, therefore. If a claim is made it is for the employer to prove that the pay was in accordance with the National Minimum Wage Act 1998.

In addition to a claim there is also HMRC enforcement. A complaint can be made by a worker or third party or HMRC can target an organization that is suspected of being non-compliant. If non-compliance is discovered the organization can be made subject to civil penalties.

In 2022-2023 HMRC investigated 3,200 cases and £13.66 million of arrears were discovered for over 108,000 workers.

Whether you are a worker, employee or employer we can provide detailed legal advice as to your position.