MILLIONS of workers are getting a pay boost from today, April 1, as the latest minimum wage hike takes effect.
The National Living Wage will go up by 50p an hour, or 4.1%, to £12.71 for workers aged 21 and over.
It will bump the average salary of a worker from £25,397 to £26,437 a year, giving them an extra £1,040, based on a 40-hour working week.
Meanwhile, 18 to 20-year-olds will see their pay increase by 8.5% from £10 to £10.85 an hour.
And the National Minimum Wage for 16 to 17-year-olds and apprentices will rise by 6% from £7.55 to £8 per hour.
The move, which applies to 2.7million workers, was first confirmed by the Treasury last November.
Despite the inflation-busting increases, the Living Wage Foundation has warned it will leave the UK’s lowest paid workers short of what’s needed for a “decent” living standard.
Its analysis shows full-time UK workers on the National Living Wage would need to be paid £1,443 more to bring their income in line with a real Living Wage, while a London-based worker would need an extra £4,076 a year.
Unlike the national minimum wage, employers voluntarily sign up to the Real Living Wage scheme, which sees staff paid above the legal minimum.
One in seven UK workers are now employed by accredited Real Living Wage companies, totalling more than 16,000.
They include businesses across various sectors, including Aviva, Everton FC, and Ikea.
Meanwhile, research last week showed pay in retail and hospitality firms have increased by an “unprecedented” 18% in the past year, according to payroll software firm Employment Hero.
The rises happened ahead of the minimum wage hike this April, based on a survey of more than 400 businesses.
Kevin Fitzgerald, managing director of Employment Hero, said: “While the national minimum wage increase is driving an immediate uplift in pay, it’s landing at the same time as wider employment law changes that are increasing the cost and complexity of hiring.
“Businesses are having to make decisions now about how they structure their workforce going forward.
“For many, that means being more cautious about hiring, particularly in roles that have traditionally relied on part-time or younger workers.”
We’ve explained how your employment rights are changing from April in our guide.
Experts have previously also warned that businesses were already struggling to absorb the costs of two successive years of significant minimum wage rises, and crucially, a bigger tax bill from paying higher National Insurance contributions (NICs) as of April last year.
This has made it more expensive for companies to keep staff.
The Resolution Foundation think tank has said the pay rise for 18 to 20-year-olds in particular is “unnecessarily big” and could make it even more difficult for them to find work in an already challenging jobs market.
Between October and December 2025, 12.8% of all people aged 16 to 24 in the UK were not in education, employment or training (NEET), according to figures released by the Office for National Statistics in February.
What is the difference between National Living Wage and National Minimum Wage?
THERE is a difference between the National Minimum Wage and National Living Wage.
The National Minimum Wage is the lowest hourly rate that companies must pay to workers.
The Government sets it, and workers are entitled to it by law.
There’s an age limit for the National Living Wage – which is the minimum amount you are entitled to if you are 21 or older.
You can’t get the minimum or living wage if you run a business and you’re working for a client.
There are several reasons why you might not be receiving the minimum wage, despite it being illegal for employers to underpay.
One common issue is unpaid working time, which can lower your hourly rate below the legal minimum.
This includes tasks like overtime, training hours, or being asked to arrive early for shifts.
But if none of this applies to you and you think are being underpaid, you can take action.
Visit gov.uk/checkyourpay to find out more about what you can do.
