A significant pay rise awaits millions of British workers this year, as a result of Labour’s Autumn Budget reveal. Chancellor Rachel Reeves confirmed the wage hike for the National Living Wage and the National Minimum Wage last autumn, proposing a push towards fairer salaries.
While the National Living Wage is a higher rate that’s compulsory for over-21s, the National Minimum Wage is the lowest legally permitted hourly pay for workers. Yet, it’s still crucial to note that not everyone is entitled to this minimum pay – including a staggering 15 job types.
It might come as a surprise that company directors, university students on work placements, and even members of the armed forces are not guaranteed the basic amount. The Government also lists the following:
- Higher and further education students on work experience or a work placement up to one year
- People on the following European Union (EU) programmes: Leonardo da Vinci, Erasmus+, Comenius
- Family members of the employer living in the employer’s home
- People living and working in a religious community
- Self-employed people running their own business
- Workers younger than school leaving age (usually 16)
- People working on a Jobcentre Plus Work trial for up to 6 weeks
- Share fishermen
- Company directors
- People who are volunteers or voluntary workers
- Workers on a government employment programme, such as the Work Programme
- Prisoners
- Members of the armed forces
- Workers on government pre-apprenticeships schemes
- People shadowing others at work
Set to roll out on April 1, 2025, wage alterations promise to impact upwards of three million employees. Apprentices and those aged 16 to 17 are set to witness the largest minimum pay surge from £6.40 to £7.55 an hour, a substantial elevation of 18%.
Eighteen to 20-year-olds will also benefit from a historic rate improvement, with their minimum wage rising to £10 per hour. The last group listed therefore encompasses over-21s, soon to receive a 6.7% pay boost worth 77p, bringing the National Living Wage to £12.21 per hour – an extra £1,400 every year.
A full list pinpointing these changes is below:
- Over-21s: £11.44 an hour to £12.21 an hour (6.7% increase)
- 18 to 20: £8.60 an hour to £10 an hour (16.3% increase)
- 16 to 17: £6.40 an hour to £7.55 an hour (18% increase)
- Apprentice: £6.40 an hour to £7.55 an hour (18% increase)
After the announcement in October, 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.”
Deputy Prime Minister Angela Rayner added: “A proper day’s work deserves a proper day’s pay. Our changes will see a pay boost that will help millions of lower earners to cover the essentials as well as providing the biggest increase for 18–20-year-olds on record.”
Am I being underpaid?
The Government urges Brits to utilise its minimum wage calculator to verify if they are receiving the correct wage. To use it, you’ll need to provide details such as your age, pay frequency, working hours, wage amount and other factors.
Employees can also use this tool to determine if their employer owes them back payments from the previous year. There is a separate calculator available for employers who have concerns about potential underpayments.