[UK] New minimum wage rates now in effect

On April 1, the UK’s national minimum wage rates rose and, according to Chancellor Rachel Reeves Autumn Budget speech, 2.7 million workers are set to benefit from the increases, City AM reports.

The Chancellor championed the hikes as part of moves to mitigate the cost of living crisis, stating that the “economy isn’t working well enough for those on the lowest incomes”.

Workers aged 21 and over will reportedly be entitled to a minimum hourly rate of £12.71, a 4.1 per cent rise above the previous £12.21 per hour. According to the government, the pay bump will increase annual gross earnings for a full-time worker on minimum pay by £900.

The nation’s lowest-paid workers will see their pre-tax pay reach £26,436.80 for a 40-hour week, while those working 37.5 hours weekly will receive £24,784.5. Workers on 35 hours will earn £23,132.2 per year.

There are larger percentage increases for younger workers as part of an ongoing plan to phase out the rate for 18-20 year-olds and align it with the adult rate. Under this plan, their age bracket will receive an 8.5 per cent boost, increasing the rate from £10 per hour to £10.85 per hour.

Apprentices and 16 to 17-year-olds will see a 6 per cent increase, rising from £7.55 to £8.

The increases are reportedly intended to keep the top rate above 66 per cent of median hourly earnings, with young people aged 16 to 21 most likely to benefit. They’re the demographic most likely to be on low pay, with around 31.7 per cent earning minimum wage in 2025.

Other forms of payment also rose on April 1. Statutory sick pay (SSP) went up to £123.20 per week, up from £118.70, and statutory maternity, paternity, adoption and parental bereavement leave rose from £187.10 per week to £194.30.

The lower earnings limit has increased by £4 per week from £125 to £129. Forthcoming legislation is expected to extend SSP entitlement to employees earning below the lower earnings limit.

Where it applies, affected employees will be entitled to the lower end of the SSP weekly rate or 80 per cent of their average earnings. The existing earnings threshold will still reportedly apply for family-related statutory payments.

Source: City AM

On April 1, the UK’s national minimum wage rates rose and, according to Chancellor Rachel Reeves Autumn Budget speech, 2.7 million workers are set to benefit from the increases, City AM reports.

The Chancellor championed the hikes as part of moves to mitigate the cost of living crisis, stating that the “economy isn’t working well enough for those on the lowest incomes”.

Workers aged 21 and over will reportedly be entitled to a minimum hourly rate of £12.71, a 4.1 per cent rise above the previous £12.21 per hour. According to the government, the pay bump will increase annual gross earnings for a full-time worker on minimum pay by £900.

The nation’s lowest-paid workers will see their pre-tax pay reach £26,436.80 for a 40-hour week, while those working 37.5 hours weekly will receive £24,784.5. Workers on 35 hours will earn £23,132.2 per year.

There are larger percentage increases for younger workers as part of an ongoing plan to phase out the rate for 18-20 year-olds and align it with the adult rate. Under this plan, their age bracket will receive an 8.5 per cent boost, increasing the rate from £10 per hour to £10.85 per hour.

Apprentices and 16 to 17-year-olds will see a 6 per cent increase, rising from £7.55 to £8.

The increases are reportedly intended to keep the top rate above 66 per cent of median hourly earnings, with young people aged 16 to 21 most likely to benefit. They’re the demographic most likely to be on low pay, with around 31.7 per cent earning minimum wage in 2025.

Other forms of payment also rose on April 1. Statutory sick pay (SSP) went up to £123.20 per week, up from £118.70, and statutory maternity, paternity, adoption and parental bereavement leave rose from £187.10 per week to £194.30.

The lower earnings limit has increased by £4 per week from £125 to £129. Forthcoming legislation is expected to extend SSP entitlement to employees earning below the lower earnings limit.

Where it applies, affected employees will be entitled to the lower end of the SSP weekly rate or 80 per cent of their average earnings. The existing earnings threshold will still reportedly apply for family-related statutory payments.

Source: City AM