Millions of employees are set to experience an increase in the minimum wage starting in April of this year. The minimum wage represents the lowest hourly pay rate mandated by law that employers must provide to their workers. The specific amount individuals are entitled to receive is determined by their age, and this regulation applies to both full-time and part-time workers.
For individuals aged 21 and over, the minimum wage is scheduled to rise by 4.1%, increasing from £12.21 per hour to £12.71 per hour as of April 2026. Those between the ages of 18 and 20 will witness an increment from £10 per hour to £10.85 per hour.
If an individual is under 18 or classified as an apprentice, the minimum wage will increase from £7.55 per hour to £8 per hour. It is worth noting that many employers already compensate their employees above the minimum wage threshold.
The announcement of this wage hike was made in November 2025 by Chancellor Rachel Reeves, who emphasized the importance of addressing the challenges faced by individuals on lower incomes. The increase in the National Living Wage and the National Minimum Wage aims to ensure that those earning lower incomes are adequately compensated for their diligent work.
Individuals aged 21 and above receive the National Living Wage, while those under 21 are paid the National Minimum Wage. It is crucial to understand that minimum wage rates do not apply to self-employed individuals, volunteers, or company directors. Some companies opt to pay the Real Living Wage, a voluntary wage based on the cost of living, surpassing the statutory minimum wage.
The Real Living Wage is set to rise to £13.45 per hour outside of London and £14.80 per hour within London. Employers are required to implement these new rates by May 2026.
If there are concerns about being underpaid, it is recommended to first review your payslip. If it appears that you have not received at least the minimum wage, it is advisable to discuss this matter with your employer initially to rectify the situation. Should the issue persist, seeking guidance from the Advisory, Conciliation and Arbitration Service (ACAS) is recommended to explore further options.
As a last resort, taking legal action against your employer through a tribunal is an option, but consulting with ACAS or Citizens Advice beforehand is advisable to understand the associated implications. Reporting the employer to HMRC is another avenue, where HMRC can investigate and potentially fine the employer for non-compliance with minimum wage regulations.
HMRC has the authority to take legal action against non-compliant employers on behalf of the worker if necessary. It is important to note that according to ACAS guidelines, pursuing both legal processes concurrently is not permissible.