Minimum wage rates are increasing, leading to a pay raise for millions of workers. The minimum wage represents the lowest hourly pay rate mandated by law, with different rates based on age groups. Starting from April 1, workers over 21 will see their minimum wage rise from £12.21 to £12.71 per hour.
For those aged 18 to 20, the minimum wage will increase from £10 to £10.85 per hour. Meanwhile, under-18s and apprentices will experience a raise from £7.55 to £8 per hour. Employers are required to implement these new rates by May 2026.
It is important to note that many employers pay above the minimum wage, as it serves as the legal baseline for both workers and employers. However, certain categories, such as self-employed individuals, volunteers, and company directors, are not covered by minimum wage regulations.
In addition to the statutory minimum wage, some companies adhere to the Real Living Wage, a voluntary rate that reflects the cost of living and exceeds the legal minimum wage. The Real Living Wage is set to increase to £13.45 per hour outside of London and £14.80 per hour within London.
If you suspect being underpaid, start by reviewing your payslip and discussing the matter with your employer. If the issue remains unresolved, consider reaching out to the Advisory, Conciliation and Arbitration Service (ACAS) for further guidance on potential next steps. In extreme cases, taking legal action against your employer or reporting them to HMRC may be necessary, with fines imposed for non-compliance with minimum wage laws. Remember to seek advice from ACAS or Citizens Advice before proceeding with legal action.