Millions of employees are set to experience an increase in the minimum wage starting in April this year. The minimum wage represents the lowest hourly pay rate mandated by law that employers must adhere to for both full-time and part-time workers, varying by age groups.
For individuals aged 21 and over, the minimum wage will see a 4.1% raise from £12.21 per hour to £12.71 per hour effective April 2026. Those aged between 18 and 20 will witness their rate climb from £10 per hour to £10.85 per hour.
If you are under 18 or an apprentice, the minimum wage will increase from £7.55 per hour to £8 per hour. It is important to note that many employers already pay above the minimum wage.
Chancellor Rachel Reeves announced the wage hike in November 2025, emphasizing the importance of addressing the cost of living challenges faced by low-income workers. The National Living Wage applies to individuals aged 21 and above, while those under 21 are entitled to the National Minimum Wage.
Notably, minimum wage regulations do not extend to self-employed individuals, volunteers, or company directors. Some organizations opt to pay the Real Living Wage, a voluntary rate exceeding the statutory minimum and based on the cost of living.
The Real Living Wage is set to rise to £13.45 per hour outside London and £14.80 per hour within London. Employers are required to implement these new rates by May 2026.
If you suspect being underpaid, start by checking your payslip and discussing the matter with your employer. Seeking assistance from the Advisory, Conciliation and Arbitration Service (ACAS) is recommended if the issue persists. In extreme cases, taking legal action through a tribunal or reporting the employer to HMRC may be necessary, subject to advice from ACAS or Citizens Advice.
HMRC can impose fines on employers found in violation of minimum wage laws and may pursue legal actions on behalf of workers for non-compliance. It is crucial to follow proper procedures and seek guidance before initiating legal actions.