The national minimum wage for 18 to 20-year-olds will see a significant increase of 16.3 percent, rising from £8.60 to £10 per hour, which equates to an additional £2,500 per year for those working 35 hours a week.

On April 1, 2025, the UK's national living wage will increase, resulting in an annual pay rise of £1,400 for workers on this wage.

This wage increase will apply to all workers earning the national living wage (NLW) or national minimum wage (NMW), including full-time, part-time, and temporary employees.

The national living wage is the highest minimum wage rate in the UK, with lower rates applicable for younger workers.

The Government will inform employers about the new rates and ensure they are prepared for payroll changes effective from April 1.

Full-time workers on the National Minimum Wage may see their annual pay boosted by up to £2,500.

Chancellor Rachel Reeves emphasized the government's commitment to providing a genuine living wage for working people with these pay boosts.

For workers aged 21 and above, the national living wage (NLW) will increase by 6.7 percent to £12.21 per hour, translating to an additional £26 per week or £117 per month.

Employees on minimum wage do not need to take action to receive the pay increase, but they should verify their payslips after April 1 to ensure the increase is implemented.

In a global context, the UK's national living wage stands at £12.21, making it the third highest minimum wage in the world.

While Australia holds the position of the highest minimum wage globally, some countries, like Sudan, report extremely low hourly pay of just £0.01.

Despite these increases, the UK minimum wage remains below the London Living Wage, which was recently raised to £13.85 per hour to address the capital's higher cost of living.