30 October 2024
The Low pay Commission (LPC) has announced that the government has accepted the National Minimum Wage (NMW) rate recommendations to apply from April 2025.
The rates are:
|
|
NMW Rate |
Increase (£) |
Increase (%) |
|
National Living Wage (NLW) – 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% |
|
Apprentice Rate |
£7.55 |
£1.15 |
18% |
|
Accommodation Offset |
£10.66 |
£0.67 |
6.7% |
Responding to their updated remit, the LPC stated they will start to chip into the gap between the NLW and the 18-20 Year Old Rate as early as 2025. As we can see, an increase of 16.3%, compared to 6.3% of the NLW, is certainly making good on these claims.
For businesses who employ a large number of young workers, however, will need to look at their finances as this will have a notable impact. Sectors such as retail and hospitality will be disproportionately impacted by these uplifts.
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