United Kingdom: National minimum wage rates to rise from April 2024

In brief

The government has announced that national minimum wage rates will rise from 1 April 2025. The National Living Wage (which applies to those aged 21 and over) will be GBP 12.21, a 6.7% increase on the current rate.


Contents

Key takeaways

  • The government has accepted the recommendations of the Low Pay Commission in full. The recommended National Living Wage is expected to equal two-thirds of median earnings.
  • The narrowing of the gap between the National Living Wage and the 18-20 year olds national minimum wage is intentional, in anticipation of the National Living Wage applying from 18 years old in the future.
  • From 1 April 2025, the rates will be:
    • National Living Wage (21 years and over): GBP 12.21.
    • 18-20 year old rate: GBP 10.00.
    • 16-17 year old rate: GBP 7.55.
    • Apprentice rate: GBP 7.55.
    • Accommodation offset (an allowable deductible from wages for accommodation, at a daily rate): GBP 10.66.

For advice or to discuss what this means for you and your business, please get in touch with your usual Baker McKenzie contact.


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