From April 1st, the wages of 3.5 million low-income workers in the UK will be increased. This wage adjustment mainly involves raising the National Living Wage and the National Minimum Wage standards, aiming to improve the economic situation of low-income groups.
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03-31, 2025Specifically, the National Living Wage applicable to employees aged 21 and over will be increased by 6.7%, while the National Minimum Wage applicable to employees aged 18 to 20 will be significantly increased by 16%. In addition, the "Real Living Wage," which is voluntarily paid by some British companies, will also be increased, benefiting approximately 500,000 employees.
In concrete terms, the National Living Wage will increase from £11.44 to £12.21 per hour. The government stated that this increase is equivalent to an annual income increase of £1,400 for eligible full-time employees. It is worth noting that, since April 2024, the applicable age for the National Living Wage has been lowered to 21 years and over.
For young employees aged 18 to 20, the National Minimum Wage will increase from £8.60 to £10 per hour. The government estimates that this increase will bring an additional annual income of £2,500 to eligible full-time employees. For employees aged 16 and 17, the National Minimum Wage will increase from £6.40 to £7.55 per hour, an increase of as much as 18%. Apprentice wages will also be increased simultaneously, applicable to apprentices under the age of 19, and those over 19 in their first year of apprenticeship.
Employers must legally pay wages no less than the National Minimum Wage and National Living Wage standards. If employers fail to pay wages as required, it will constitute a criminal offense. These wage standards also apply even if employees are not paid on an hourly basis. Any employer who fails to pay the correct wage amount may be subject to fines from Her Majesty's Revenue and Customs (HMRC).
The "Real Living Wage" is a non-official hourly rate standard overseen by the Living Wage Foundation, aimed at providing more reasonable remuneration for British workers aged 18 and over, but it is not legally mandatory. Currently, more than 475,000 employees in over 15,000 companies enjoy the "Real Living Wage." The "London Living Wage" will increase by 70 pence to £13.85 per hour, an increase of 5.3%. The "Real Living Wage" in other parts of the UK will increase by 60 pence to £12.60 per hour, an increase of 5%. Employers participating in the scheme must implement the new wage standards by May 1, 2025. The Living Wage Foundation stated that, in the UK, the "Real Living Wage" is £2,262 more per year than the statutory minimum wage, and £4,700 more in London.
