National Living Wage rises
Employers will be aware that the national living wage (NLW) will rise from the 1st April 2025. The increase this year for younger workers is significant and reflect Labour’s plans to move towards aligning the rates to create a single adult wage rate. We set out below the new rates from the 1st April 2025 and the percentage increase.
NMW Rate | Inc. (£) | % Inc. | |
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 |
NB. Members should also note that various awards and compensation limits in Tribunals are increasing. Of particular note, is that the limit for the compensatory award for unfair dismissal will increase by over £3,000 to £118,223 and the limit for a week’s pay (used for calculating the basic award for unfair dismissal and statutory redundancy payments) increases from £700 to £719.