National Minimum Wage April 2025: New Rates and What Changed
Every April, minimum wage rates are uprated following recommendations from the Low Pay Commission. From 1 April 2025, rates increased significantly for all age groups. Here is the full picture.
National Minimum Wage rates from April 2025
| Category | Rate from April 2025 | Previous rate (2024-25) | Increase |
|---|---|---|---|
| National Living Wage (aged 21+) | £12.21/hr | £11.44/hr | +6.7% |
| Aged 18–20 | £10.00/hr | £8.60/hr | +16.3% |
| Aged 16–17 | £7.55/hr | £6.40/hr | +18.0% |
| Apprentice rate | £7.55/hr | £6.40/hr | +18.0% |
| Accommodation offset (daily) | £10.66 | £9.99 | +6.7% |
The apprentice rate applies to apprentices aged under 19, and to those aged 19 or over in the first year of their apprenticeship. After the first year, those aged 19+ are entitled to the rate for their age group.
Annual equivalent at the National Living Wage
At £12.21 per hour, a full-time worker on 40 hours per week earns:
- Weekly: £488.40
- Monthly: £2,115.40
- Annual: £25,396.80
After tax and National Insurance (basic rate, 2025-26, no student loan), a full-time NLW worker takes home approximately £21,356 per year — an effective rate of around 84p in every £1.
The 18–20 pay rise: the largest in decades
The 16.3% increase for 18–20 year olds is one of the largest single-year uplifts in NMW history. The government's aim is to narrow the gap between youth rates and the full NLW, with a stated intention to eventually align them — though no fixed timetable has been set.
How NMW enforcement works
HM Revenue & Customs enforces NMW compliance through employer audits and worker complaints. Penalties for underpayment are:
- Employers must repay 100% of arrears owed
- A financial penalty of up to 200% of arrears (minimum £100, maximum £20,000 per worker)
- Named and shamed via the government's public list of NMW non-compliant employers
What counts toward NMW?
Most wage payments count, but some deductions and payments do not. Notably: tips and gratuities paid through the payroll do not count toward NMW (a change introduced in 2024). Salary sacrifice deductions that bring pay below NMW are not permitted.
Frequently asked questions
When did the new minimum wage come into effect?
From 1 April 2025. The NMW/NLW always increases on 1 April, not 6 April (the start of the tax year).
Am I entitled to NLW at 20 years old?
No. The National Living Wage applies to workers aged 21 and over. Workers aged 18–20 are entitled to the 18–20 rate of £10.00/hr from April 2025.
Can my employer pay me less than NMW if I agree to it?
No. NMW is a legal floor — any agreement to accept less is void. It does not matter whether the arrangement is informal or in writing.