From April 2025, the NLW will increase by 6.7% and the NMW by as much as 18% depending on the category of the worker.
The NMW is the minimum amount per hour workers are entitled to be paid by law. Different rates apply depending on the category of the worker.
The apprenticeship rate applies to apprentices under 19 or 19 and over in the first year of apprenticeship. The NLW applies to those aged 21 and over.
| NLW | 18-20 | 16-17 | Apprentices | |
| From 1 April 2025 | £12.21 | £10.00 | £7.55 | £7.55 |
Peter Bickley, Technical Manager – Employer Taxes, ICAEW, said:
‘Although the rise in the minimum wage will be welcomed by many workers, it presents a further challenge for employers already facing significant changes from April 2025, not least the increase in the rate of, and secondary threshold for employers’ National Insurance contributions, albeit that the bigger employment allowance should help small employers.
‘Employers must ensure that they continue to comply with the requirements as it is a criminal offence not to pay someone the minimum wage.’