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Autumn Budget Updates: National Minimum Wage in 2025

national minimum wage 2025

Contents

2024/25 Payroll Legislation Guide

The facts, figures, thresholds and allowances for 2024/25, in one handy guide.

“A proper day’s work deserves a proper day’s pay.” — Angela Rayner, Deputy Prime Minister. 

We couldn’t put it better ourselves. When your employees put in an honest day’s effort, give their time, energy, and skill to a task or role, they deserve to be compensated fairly. 

Something which the Labour government are already showing their commitment to, with their first Autumn Budget announcing a boost to minimum wage. Let’s see what the 2025 Minimum Wage and National Living Wage are set to be. 

Minimum Wage in 2025

Here are the latest National Minimum Wage rates, which will come into force from 1 April 2025: 

 

NMW Rate 

Increase (£) 

Percentage increase 

National Living Wage (21 and over) 

£12.21 

£0.77 

6.7 

18–20-year-old rate 

£10.00 

£1.40 

16.3 

16–17-year-old rate 

£7.55 

£1.15 

18.0 

Apprentice Rate 

£7.55 

£1.15 

18.0 

Accommodation offset 

£10.66 

£0.67 

6.7 

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How many UK employees will this affect?

Over 3 million UK employees are set to receive a pay boost in 2025 thanks to the government’s decision to increase the National Living Wage by 6.7%. This means a full-time employee could see an annual pay rise of around £1,400. 

“This Government promised a genuine living wage for working people. This pay boost for millions of workers is a significant step towards delivering on that promise.” — Rachel Reeves, Chancellor of the Exchequer  

Are you looking for timely and accurate payroll that keeps you on top of minimum wage rates?

Calculating payroll can be complicated, especially if you have a mix of full-time employees, part-time employees and apprentices.  

With Cintra, you’re in safe hands. Everyone (and we mean everyone) will get paid the right amount, on time, every time. 
 

Book a personalised demo today to see either Cintra’s payroll software or outsourced services in action.  

Cintra - Payroll Legislation Guide 2425
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Payroll Legislation Guide

The facts, figures, thresholds and allowances for 2024/25 spanning tax, National Insurance, pensions, statutory payments and more.

Picture of Anthony Tete
Anthony Tete
Anthony is our Communications and Content Manager for Capture Expense and supports the Cintra brand. Beyond the world of words, Anthony is passionate about all things sports and loves attending rugby games!