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Wages rose for three and a half million low-paid workers on 1 April, when the new rates for the National Living Wage and National Minimum Wage took effect.
The pay rates are set by the government every year on the advice of an independent group, the Low Pay Commission, and apply across the whole of the UK.
A higher hourly rate called the Real Living Wage, paid voluntarily by some UK firms to almost half a million people, has also increased.
What is the National Living wage, and how much is it worth?
Since April 2024, the National Living Wage has applied to employees aged 21 and over. Previously, you had to be 23.
On 1 April 2025, the National Living Wage went up from £11.44 an hour to £12.21, an increase of 6.7%.
The government said the increase was worth £1,400 a year for an eligible full-time worker.
What is the National Minimum Wage and how much is it worth?
Younger employees – aged between 16 and 20 – are entitled to receive the National Minimum Wage.
On 1 April, the 18-20-year-old-rate rose from £8.60 an hour to £10, a rise of 16.3%.
The government said the increase was worth £2,500 for an eligible full-time worker.
At the same time, the 16-17-year-old-rate went up from £6.40 an hour to £7.55, an 18% increase.
What is the apprentice rate and how much is it worth?
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There are different rates of pay for apprentices depending on your age and what stage of your apprenticeship you are in.
Apprentices aged 16 to 18 are entitled to the National Minimum Wage rate for that age group which is £7.55.
Those aged 19 or in the first year of their apprenticeship are paid the same amount.
But those over 19 – or who have already completed their first year – are entitled to the appropriate National Minimum Wage or National Living Wage rate for their age.
How do apprenticeships work?Who doesn’t qualify for the National Minimum Wage and National Living Wage?
Some workers don’t qualify for either the National Minimum Wage or the National Living Wage.
This includes the self-employed, company directors, volunteers, members of the armed forces and prisoners.
People with disabilities or in long-term unemployment who take part in government work programmes are paid fixed amounts at different stages of the scheme.
These are less than the equivalent National Minimum or Living rate.
Do employers have to pay the National Minimum Wage and National Living Wage?
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What happens if employers don’t pay the right wage?
Any employer not paying the correct amount can be fined by HMRC.
In June 2023, the previous Conservative government said that more than 200 firms had been fined a total of nearly £7m.
They were told to reimburse 63,000 workers for failures over several years.
The companies included Marks and Spencer, Argos and Lloyds Pharmacy. WH Smith was the worst offender, having failed to pay more than £1m to more than 17,600 workers.
What is the Real Living Wage and how much is it?
The Real Living Wage is an unofficial hourly rate of pay which is overseen by the Living Wage Foundation charity.
It is aimed at UK workers aged 18 and over, but is voluntary, and firms can choose whether or not to pay it.
According to the charity more than 475,000 employees working for more than 16,000 firms receive the Real Living Wage.
The rate for workers in London – the London Living Wage – went up by 70p to £13.85 an hour, a 5.3% increase.
In the rest of the UK, a 60p increase took the rate to £12.60, a rise of 5%.
The Living Wage Foundation said wage was worth £2,262 more per year in the UK than the legal minimum pay, and £4,700 more in London.
Employers who are signed up to the scheme have six months to implement the increase.
