The UK minimum wage increased on 1 April 2025. For workers aged 21 and over, the National Living Wage rose to £12.21 per hour, alongside higher rates for younger workers and apprentices.
The increase was based on Low Pay Commission recommendations accepted by the government in the October 2024 Budget. Payroll specialists note that where a pay period straddles 1 April, the higher rate may not apply until the next pay reference period, depending on payroll cut-off rules.
This article provides a detailed breakdown of the new rates, what they mean for take-home pay, and what workers can expect in 2026.
What Is the UK Minimum Wage Increase for April 2025?
The 2025-2026 rates introduce the most significant percentage increase for younger workers in recent years. All four main wage bands rose by at least 6.7%, with the 18-20 bracket seeing a 20.6% increase.
National Living Wage (21+)
£12.21 per hour
Increase of £0.77 (6.7%)
18-20 Year Old Rate
£10.00 per hour
Increase of £1.71 (20.6%)
16-17 Year Old Rate
£7.55 per hour
Increase of £1.05 (16.2%)
Apprentice Rate
£7.55 per hour
Increase of £1.05 (16.2%)
Key insights from the 2025 increase:
- The biggest percentage increase is for 18-20 year olds (20.6%), reflecting a policy push towards a single adult rate.
- The National Living Wage age threshold dropped from 23 to 21 in April 2024, meaning more workers now qualify for the highest rate.
- All rates increased by a minimum of 6.7% for the 2025-2026 period.
- There is no scheduled minimum wage increase for September 2025; the annual change is set for April.
- According to a payroll source, the 2025 NLW increase to £12.21 represented an approximate annual increase of £1,400 for full-time employees.
- The Living Wage Foundation stated that a full-time worker on the 2025 NLW would still earn £760 less per year than someone on the voluntary Real Living Wage.
| Age Bracket | Hourly Rate | Increase (£) | Increase (%) |
|---|---|---|---|
| 21 and over (National Living Wage) | £12.21 | +£0.77 | +6.7% |
| 18 to 20 | £10.00 | +£1.71 | +20.6% |
| Under 18 | £7.55 | +£1.05 | +16.2% |
| Apprentice | £7.55 | +£1.05 | +16.2% |
Source: gov.uk. Apprentice rate applies to apprentices under 19 or in the first year of their apprenticeship.
What Are the Minimum Wage Rates for Different Age Groups in 2025?
Understanding which rate applies depends on the employee’s age and, for apprentices, their year of study.
Workers Aged 21 and Over (National Living Wage)
The National Living Wage for anyone aged 21 or over is £12.21 per hour. This is the highest statutory minimum wage rate in the UK.
Workers Aged 18 to 20
The rate for 18 to 20-year-olds increased substantially to £10.00 per hour. This 20.6% rise is the largest single increase for this age group in recent history.
Workers Aged 16 to 17
Workers under 18 but above the compulsory school leaving age are entitled to £7.55 per hour.
Apprentices
The apprentice rate also rose to £7.55 per hour. Acas and DWF Group clarify that an apprentice gets the apprentice rate only if they are under 19, or 19 or over and in the first year of their current apprenticeship. After the first year, they must be paid the minimum wage for their age band.
The £7.55 apprentice rate is not automatic for all apprentices. Employers must check whether the apprentice is under 19, or 19 or over and in the first year of their apprenticeship. After 12 months, the rate increases to the appropriate age band rate.
How Much Is the UK Minimum Wage Per Month and Year in 2025?
Using the standard assumption of 37.5 hours per week for full-time work, here are the take-home figures before tax and National Insurance.
National Living Wage (21+) – Full-Time (37.5 hrs/week)
- Weekly: £458.25
- Monthly: £1,983.63
- Yearly: £23,793
18-20 Year Old Rate – Full-Time (37.5 hrs/week)
- Weekly: £375.00
- Monthly: £1,625.00
- Yearly: £19,500
Despite the increase, the Living Wage Foundation highlighted that a full-time worker on the 2025 National Living Wage would still earn £760 less per year than someone on the voluntary Real Living Wage, which is calculated based on actual living costs.
When Does the Minimum Wage Increase Take Effect and What About 2026?
Effective Date of the 2025 Increase
The new rates took effect on 1 April 2025. A payroll industry source notes that for pay periods straddling this date, the higher rate may not apply until the next pay reference period, depending on the employer’s payroll cut-off rules.
Projected Rates for 2026
For 2026, the rate for workers aged 21 and over is set to rise to £12.71 per hour. BDO UK describes this as a 4.1% increase (50p per hour). NFUonline lists the full projected April 2026 rates.
21 and over: £12.71. 18 to 20: £10.85. Under 18: £8.00. Apprentice: £8.00. Accommodation offset: £11.10 per day. These rates are current projections and may be subject to change based on economic conditions.
Key Dates for UK Minimum Wage
- 30 October 2024: The UK government published the official new rates for 2025, confirming the £12.21 National Living Wage.
- 1 April 2025: The 2025-2026 rates took effect across all age brackets.
- 1 April 2026: The next scheduled increase, with a projected National Living Wage of £12.71 for those aged 21 and over.
Clarity on Minimum Wage Increases in 2025
There is some confusion around whether an additional increase occurs in September 2025. The facts are clear.
| Established Information | Information That Remains Unclear |
|---|---|
| The 2025 rates (effective 1 April 2025) are confirmed by legislation. | The 2026 rate (£12.71) is a government projection based on Low Pay Commission advice and is subject to change. |
| There is no scheduled minimum wage increase in September 2025. | Future rates beyond 1 April 2026 have not yet been determined. |
| Rates for 21+, 18-20, 16-17, and apprentices are fixed until 31 March 2026. | — |
Context: National Living Wage vs. National Minimum Wage
The National Living Wage (NLW) is the highest statutory minimum wage rate, currently applying to workers aged 21 and over. The National Minimum Wage (NMW) applies to younger workers and apprentices. The distinction is age-based.
The 2025 increase continues the UK government’s trajectory toward what it calls a “genuine living wage.” The significant 20.6% increase for 18-20 year olds and the lowering of the NLW age threshold to 21 are the most impactful structural changes in recent years. These changes are designed to narrow the gap between youth rates and the adult rate.
All rates are based on recommendations from the independent Low Pay Commission. The 2026 projection of £12.71 represents a moderate 4.1% increase, reflecting a potentially cooler economic outlook compared to the high inflation seen in 2024.
Sources and Official Quotes
“The National Living Wage (21 and over) will be £12.21 from 1 April 2025, an increase of £0.77 or 6.7%.”
— UK Government (gov.uk), Low Pay Commission publication
“Effective 1 April 2026 the National Living Wage for over-21s will increase by 50p per hour to £12.71 – that’s a rise of 4.1%.”
— BDO UK, Tax Advisory
“The Low Pay Commission recommendations were part of the 2025 increase and were accepted by the government in the October 2024 Budget.”
— Payroll.org
Summary: What’s Next for UK Minimum Wage?
The April 2025 increase is now in effect. The next scheduled rise is 1 April 2026, with a projected National Living Wage of £12.71 for those aged 21 and over. Read more in our UK minimum wage 2025 increase – new rates and impact guide. Employers should budget for the current 2025-2026 rates and plan for the potential 2026 increase. Watch for the government’s official response to the Low Pay Commission’s 2026 recommendations, expected in late 2025.
Frequently Asked Questions
What is the minimum wage yearly salary UK for 2025?
Based on a standard 37.5-hour week and 52 weeks per year, a worker on the National Living Wage (£12.21) earns approximately £23,793 per year before tax. A worker aged 18-20 on £10.00 per hour earns approximately £19,500 per year.
How much is the UK minimum wage a month in 2025?
Using the same full-time calculation, the monthly estimate for the National Living Wage is roughly £1,983.63 (before deductions). For an 18-20 year old, it is approximately £1,625 per month.
Will there be a minimum wage increase in September 2025?
No. The UK minimum wage is reviewed annually, with changes implemented on 1 April each year. There are no scheduled increases in September 2025.
What is the minimum wage for a 16 year old in 2025?
The minimum wage for workers aged 16 to 17 is £7.55 per hour for the 2025-2026 period.
What is the minimum wage for 18-20 year olds in 2025?
The rate for 18 to 20-year-olds is £10.00 per hour, effective from 1 April 2025.
What is the difference between National Living Wage and National Minimum Wage?
The National Living Wage is the highest minimum wage rate, applying to workers aged 21 and over. The National Minimum Wage applies to younger workers (18-20, 16-17) and apprentices.
When does the minimum wage increase take effect in 2025?
The new rates took effect on 1 April 2025. Where a pay period straddles this date, the higher rate may not apply until the next pay reference period.
Will the minimum wage increase again in 2026?
Yes. The government has projected an increase to £12.71 per hour for those aged 21 and over, effective from 1 April 2026.
What are the apprentice minimum wage rules for 2025?
Apprentices under 19, or those 19 or over in the first year of their apprenticeship, are entitled to £7.55 per hour. After the first year, they must be paid the minimum wage for their age band.
Madeleine Shaw is Politics & Public Affairs Editor at NewsPrism.co.uk, covering Parliament, government policy, elections and public spending.