More than 3 million UK workers set to get pay rise from 1 April
The National Living Wage and National Minimum Wage are set to increase from April
Millions of UK workers are set to get a pay increase from 1 April 2025 due to a rise in National Living Wage and National Minimum Wage. This country-wide increase to salaries will mean that more than 3 million workers will see a pay rise from tomorrow, April 1.
Announced in the Budget last year, the National Living Wage is set to increase from £11.44 to £12.21 an hour which is a 6.7 per cent increase that will be worth an extra £1,400 a year for an eligible full-time worker.
Meanwhile, the National Minimum Wage, for 18 to 20-year-olds, will rise from £8.60 to £10.00 an hour – the largest increase in the rate on record.
This is the first time the National Living Wage has taken into account the cost of living and inflation and it marks the first step towards creating a single minimum wage for all adults by aligning the National Minimum Wage for 18–20-year-olds and National Living Wage.
The government plans to eventually remove the age brackets for the National Living Wage and Minimum Wage to create a single rate for adults - putting an end to age-based wage discrimination.
On top of the changes to National Living and National Minimum wages, the minimum hourly wage for an apprentice will also be boosted from April, increasing from £6.40 to £7.55 an hour.
According to the government, these increases mean that 3.5 million workers will receive a pay rise in April. Chancellor Rachel Reeves said: “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.”
Other changes coming into effect in April includes higher rates for parental leave pay, such as statutory maternity pay.
Statutory maternity pay, which is paid to eligible parents for up to 39 weeks, will go up from £184.03 per week to £187.18 per week. Statutory paternity pay, statutory adoption pay, statutory parental bereavement pay and statutory shared parental pay will also go up to £187.18 per week.
The earnings threshold for these benefits will go up from £123 to £125 a week, while the threshold for maternity allowance will remain at £30 per week. Statutory sick pay will rise from £116.75 per week to £118.75.
As well as these changes, employer National Insurance contributions are also set to go up by 1.2 per cent from 1 April - up to 15 per cent.
Announced by Ms Reeves during the Autumn Budget last year, she also confirmed that the secondary threshold – the level at which employers start paying National Insurance on each employee’s salary – will be lowered from £9,100 per year to £5,000.