Millions of UK workers and the backbone of our nation, are set to receive a welcome boost to their wages in the coming weeks as the government implements the latest increase to the minimum wage. From April 1, 2025, the statutory minimum wage will rise by 6.7%, providing many workers with a much-needed financial uplift.
Understanding the New Minimum Wage Rates
The minimum wage is the lowest hourly rate that employers are legally required to pay workers, depending on their age. The upcoming increase means that those currently earning the minimum wage will soon see higher wages in their pay packets.
For workers aged 21 and over, the minimum wage—also known as the National Living Wage—will rise from £11.44 per hour to £12.21 per hour. Those under 21 will also benefit from increased rates:
- Ages 18-20: Rising from £8.60 per hour to £10.00 per hour
- Under 18 and Apprentices: Increasing from £6.40 per hour to £7.55 per hour
These changes mean that a full-time worker on the main minimum wage can expect to earn an extra £1,400 per year, according to government estimates. However, the exact increase depends on the number of hours worked.
Who Is Not Covered by the Minimum Wage?
While most workers are entitled to the new rates, there are some exceptions. The minimum wage laws do not apply to:
- Self-employed individuals
- Volunteers
- Company directors
- Some trainees and interns
If you fall into one of these categories, it is essential to check alternative pay structures relevant to your role.
What About the Real Living Wage?
Beyond the statutory minimum wage, some employers voluntarily pay the Real Living Wage, which is calculated based on the cost of living. This is higher than the government-set minimum and applies to workers aged 18 and over in participating businesses.
More than 15,000 employers, including Aviva, Ikea, Everton FC, Burberry, and Lush, have signed up for the Real Living Wage scheme. The new rates, which must be implemented by May 2025, are:
- £12.60 per hour outside London
- £13.85 per hour inside London
Workers should check if their employer is part of the scheme to determine their eligibility for these higher wages.
How to Check If You Are Being Paid Correctly
To ensure you are receiving the correct wage increase, follow these steps:
- Review Your Payslip: Your employer is legally required to provide a payslip detailing your earnings and any deductions.
- Use the Government’s Minimum Wage Calculator: Available on GOV.UK, this tool can help you determine whether you are being paid correctly.
- Talk to Your Employer: If you suspect that you are not being paid the correct amount, raise the issue with your employer first to allow them to rectify any errors.
- Seek Advice: If your employer does not resolve the issue, you can contact HM Revenue & Customs (HMRC), which is responsible for enforcing minimum wage laws.
The Impact of the Pay Rise on UK Workers
The increase in the minimum wage comes at a critical time, with rising living costs affecting households across the UK. The additional earnings will help workers cover essential expenses such as rent, utilities, and food. However, while the pay rise is a positive step, it remains to be seen whether it will keep pace with inflation and the broader cost-of-living challenges facing many households.
The Workers Union Says…
“The rise in the minimum wage is welcome news for many UK workers, but it is crucial that employees check their payslips to ensure they are receiving the correct amount. If you believe you are being underpaid, take action by using government resources and speaking to your employer. The Workers Union continues to advocate for fair pay and better working conditions, ensuring that UK workers get the support they deserve.”
