Minimum wage: Who is getting a pay rise and how much is it?

The official minimum rates of pay has risen, meaning 2.7 million workers will be paid more from April.

The rate for workers aged 21 and over is called the National Living Wage, while those aged 18 to 20 are paid the National Minimum Wage.

The rates apply across the UK.

Starting 1 April 2026, workers over 21 on the National Living Wage will be paid £12.71 an hour, 50p more than last year.

For someone working full time (37.5 hours a week), that amounts to £24,784.50 a year - an increase of £900.

The rate for 18 to 20-year-olds has gone up to £10.85 an hour.

That's an increase of 85p per hour.

It amounts to an increase of £1,500 a year for a full-time worker.

The government said its goal is to eventually scrap this separate rate for 18 to 20-year-olds, and have one rate for all adults.

The minimum wage for 16 and 17-year-olds has also risen and is now £8 an hour.

There are different rates of pay for apprentices depending on their age and what stage of apprenticeship they are in.

Apprentices aged 16 to 18 are entitled to the National Minimum Wage rate for that age group which is currently £8.

Those aged 19, or in the first year of their apprenticeship, are paid the same amount.

But those over 19 - or who have already completed their first year - are entitled to the appropriate National Minimum Wage or National Living Wage rate for their age.

• How do apprenticeships work?

Some workers do not qualify for either the National Minimum Wage or the National Living Wage.

This includes the self-employed, company directors, volunteers, members of the armed forces and prisoners.

People with disabilities or in long-term unemployment who take part in government work programmes are paid fixed amounts at different stages of the scheme.

These are less than the equivalent National Minimum or Living rate.

Yes. It is a criminal offence for employers not to pay the correct National Minimum and Living Wages to eligible employees.

The rates apply even if workers are not paid by the hour.

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If you think you are being paid the wrong amount, you can complain via the HMRC website.

You can also get advice from workplace experts Acas.

Any employer not paying the correct amount can be penalised by HMRC.

In March 2026, the government said that 389 employers had been fined around £12.6m for failing to pay staff properly.

They must also repay the missing £7.3m to the around 60,000 workers who were underpaid.

Firm named included the Nursery chain Busy Bees, Norwich City Football Club, Hays Travel and Costa Coffee.

The Real Living Wage is an unofficial hourly rate of pay which is overseen by the Living Wage Foundation charity, who say it is set at a rate to meet the cost of living.

It increases every October.

Some firms choose to pay the Real Living Wage, but it is not mandatory.

According to the charity almost 500,000 employees working for more than 16,500 firms receive the voluntary rate of pay.

Since October 2025, workers in London on the Real Living Wage have earned at least £14.80 an hour - the London Living Wage.

In the rest of the UK, the rate is £13.45.

The Living Wage Foundation says the rate is worth £2,418 more per year than the legal minimum wage in the UK, and £5,050 more in London.