As an employer, staying informed about the national minimum (NMW) and national living wage (NLW) rates is crucial. It’s equally as essential to understand what these rates mean for you as an employee, and to keep an eye that you are being paid correctly!
These are the NMW and NLW rates for 2024/25…
National minimum wage:
The national minimum wage increases from the 1st April 2024. The rate system has changed slightly this year, with the national living wage now applying to everyone aged 21 and over, compared to the 2023/24 NMW rates where NLW applied to those aged 23 and over, and those aged 21 to 22 had their own range.
The rates:
| Category | Rate | Percentage increase from 23/24 |
| 21 and over | £11.44 (NLW) | 9.8% |
| 18 – 20 | £8.60 | 14.8% |
| Under 18 | £6.40 | 21.2% |
| Apprentices | £6.40 | 21.2% |
The bump in the National Minimum Wage (NMW) and National Living Wage (NLW) is great news for lots of workers in the UK who’ve been struggling to keep up with the rising cost of living.
Employers who don’t pay their staff the right rates not only face potential claims from workers but also risk being publicly called out in a government report. It’s crucial for you to stay updated on pay rate increases, especially the application of the National Living Wage (NLW) to workers aged 21 and starting 1st April 2024.
And don’t forget to check your employees’ wages against schemes such as salary sacrifices, which could see cash wages dip below the new limits!
Download our 2024/25 payroll legislation guide…
If you’re a payroll professional, we’ve created a handy comprehensive guide of all the 2024/25 payroll legislation updates you’ll need to know. Download it now.
Payroll Legislation Guide
The facts, figures, thresholds and allowances for 2024/25 spanning tax, National Insurance, pensions, statutory payments and more.
