Official Minimum Wage Rates Set to Increase by 3.9% for 2.3 Million Workers

The official minimum rates of pay are set to rise for 2.3 million workers starting April 1st, according to government figures. The National Living Wage, applicable to workers aged 21 and over, and the National Minimum Wage for those aged 18 to 20, will both see a 3.9% increase. For those over 21, the rate will rise to £13.21 per hour, up from the current £12.71. For a full-time employee working 35 hours a week, this increase in the National Living Wage translates to an additional £910 in gross annual earnings, according to the Treasury. For workers aged 18 to 20, the National Minimum Wage will increase to £11.27 per hour from April 1st, up from £10.85. This represents an increase of £760 to gross annual earnings for a full-time worker. Furthermore, the minimum wage for apprentices aged 16 to 17 will also rise by 3.9%, increasing from £8 per hour to £8.31. Apprentices over 19 or those who have completed their first year will be entitled to the appropriate National Minimum Wage or National Living Wage rate for their age group. However, the current adjustments do not address Labour's manifesto promise to narrow the wage gap between older and younger workers. Not all workers qualify for these minimum rates. Exemptions include the self-employed, company directors, volunteers, members of the armed forces, and prisoners. Additionally, individuals participating in government work programmes due to disability or long-term unemployment are paid fixed amounts that are less than the equivalent minimum rates. Failure to pay the correct National Minimum and Living Wages is a criminal offense. HMRC has previously penalized employers, noting that in March 2026, 389 employers were fined around £12.6 million for underpaying staff, with a requirement to repay £7.3 million to approximately 60,000 workers. In contrast to the mandatory legal minimum, the Real Living Wage is a voluntary rate overseen by the Living Wage Foundation. This unofficial rate is set to meet the cost of living and is currently paid by nearly 500,000 employees across 17,000 firms, offering significantly higher annual earnings than the legal minimum wage.