From 1 April 2025, updated National Minimum Wage rates will come into effect across the UK. Employers will need to understand how the new rates and other changes apply to their workforce.
 
What is the National Minimum Wage?
The National Minimum Wage is the minimum pay per hour almost all workers are legally entitled to. For workers aged 21 and over, a higher rate – known as the National Living Wage – applies. This was previously set at 23+. The minimum wage will still apply for workers aged 20 and under.

Regardless of size, all businesses must pay the correct minimum wage. Non-compliance can result in HMRC penalties, back payments, and being publicly named for underpayment.

Employers can choose to pay their employees more than the minimum rates. This can be a valuable way to attract and retain talent, and to recognise progress and contribution.

Updated Rates from April 2025
Aged 21 and above (National Living Wage): £12.21
Aged 18-20: £10.00
Aged under 18 (but above compulsory school leaving age): £7.55
Apprentices aged under 19: £7.55
Apprentices aged 19 or over, but in the first year of their apprenticeship: £7.55

To help SMEs navigate employment law and compliance issues, WorkSmarter’s HR Partners can offer customers bespoke advice and guidance in relation to their specific business.
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