Overview
On 1 April 2026 the National Minimum Wage (“NMW”) rates and the National Living Wage (“NLW”) rate will be increasing, with the NLW rate increasing by 4.1% from £12.21 to £12.71 per hour. For someone working full time (37.5 hours a week), the increase in the NLW will mean a minimum salary of £24,784.50 a year – an increase of £900.
The rate for workers aged 21 and over is called the National Living Wage, whilst the other groups listed below are paid the National Minimum Wage.
Key Changes
The changes for employers and employees to be aware of are listed below:
| Age Group | Previous Rate | New Rate (effective from 1 April 2026) |
| 21 and over (National Living Wage) | £12.21 | £12.71 |
| 18 to 20 | £10 | £10.85 |
| 16 to 17 & Apprentices | £7.55 | £8 |
The Impact on Employers
The new rates will result in increased costs to employers. The changes are expected to result in an increase in the rate of pay paid to 2.7m workers across the UK. This change is not unexpected, as the NMW rates increase annually. However, employers are already feeling the squeeze, following the increase in the rate of employer’s National Insurance contributions and the reduction in the threshold at which they start paying this.
Enforcement
Furthermore, and in related news, the enforcement of the NMW is due to change following the passing into law of the Employment Rights Act 2025 (“ERA 2025”). The ERA 2025 proposes a new state enforcement agency named the “Fair Work Agency”. This will take over HMRC’s function in enforcing the NMW. Employers need to take a proactive approach to ensure they are complaint with the law to avoid penalty payments to the Fair Work Agency, as well as paying any sums owed to employees and workers.
Given the recent rise in enforcement action taken by HMRC, we can expect that this will only continue with the Fair Work Agency.
In addition, Statutory Leave Entitlements are also set to increase on 6 April 2026, putting further financial pressure on employers. You can read more about this in our short blog here: Statutory Leave Entitlements Set to Increase from 6 April 2026 for the 2026/27 Tax Year.
Our Services
We can advise on reviewing or updating any practices or company policies to bring these in line with the changes, ensuring they are complaint. See our Employment Services website page for a full list of our services.
If you have concerns about the impact of the NMW and NLW, or any other employment-related concerns, please do not hesitate to get in touch with our team.
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