Minimum wage: 2025 pay rise for workers with new April national minimum wage increase - when does it go up?

• Over 3 million workers will see a pay rise from April 1 as the minimum wage increases
• The national living wage will rise by 6.7%, providing up to £1,400 more annually
• The minimum wage for under-21s will also increase, with rises for younger workers
• But the Real Living Wage (RLW) is still higher than the statutory minimum, offering more to workers
• Some businesses, like Asda and Leon, have committed to paying the RLW by October

Millions of workers will see a pay rise this week, as statutory minimum wages increase in a move unions say will support economic growth.

The Government has said that over three million workers nationwide will benefit from the hike, which will come into effect from Tuesday (April 1), and was announced by the Chancellor in her autumn budget last year.

Rachel Reeves called the change a “significant step” toward fulfilling the Government’s promise of a “genuine living wage for working people.” Here is everything you need to know about it.

How much is minimum wage going up by?

Starting from Tuesday April 1, the national living wage will rise for all workers aged 21 and over, providing an annual pay increase of up to £1,400, based on a 35-hour workweek.

The 6.7% increase means workers will earn £12.21 per hour, up from the current £11.44. An increase of 77p per hour.

The Government has calculated that full-time employees can expect to see an extra £26 per week, or £117 per month.

The national minimum wage for workers aged 21 and under will also rise, with the wage for 18 to 20-year-olds increasing to £10 per hour (a 16.3% rise). For 16 and 17-year-olds, it will increase to £7.55 per hour (an 18% increase).

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What is the Real Living Wage?

While an increase in the national minimum wage will always be welcomed, campaigners have highlighted that the statutory minimum wage still falls short of the voluntary "real living wage" (RLW).

The RLW currently stands at £12.60 an hour nationally and £13.85 in London for all workers aged 18 and over.

That means that the national RLW rate currently offers 39p more per hour than the increased minimum wage will - RLW workers in London earn an extra £1.64 an hour.

This might not seem like all that much, but over a 35-hour work week, it means that someone receiving the RLW will take home £13.65 more than someone receiving updated minimum wage rates. Those in London could make up to £57.40 more per week.

The RLW is set by the Living Wage Foundation, which calculates its recommended rates using factors like housing, childcare, energy bills, food, and transportation.

The Foundation commissions independent research to assess what workers need to earn to meet their basic living costs, and updates its suggested rate annually to reflect changes in these costs.

The Living Wage Foundation accredits over 15,000 businesses that choose to pay their employees above the statutory minimum. These companies recognise the higher costs of living and aim to provide a wage that reflects this.

But the RLW is not a legal requirement, and many companies still pay the statutory minimum wage rather than the RLW, often due to financial constraints.

Some businesses, like Asda Express, Foodservice, and Leon, have committed to paying the RLW by October for their workers, but the gap remains for many others.

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