Millions of workers’ pay will go up next week after Rachel Reeves announced substantial increases to the living and minimum wages in her 2024 autumn budget.
From April 1 those on the national living wage (NLW) will get another £1,400 a year, based on a 35-hour working week, amounting to £26 a week or £117 a month. This is a 6.7 per cent rise.
The national minimum wage for 18 to 20-year-olds is increasing by 16.3 per cent from £8.60 to £10. This will give a young adult working a 35-hour week about another £2,500 a year.
The chancellor 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.”
The national living wage is the highest rate of the minimum wage, which is the lowest hourly pay that most workers in the UK are entitled to by law.
The amount differs depending how old the employee is.
What is the minimum wage in the UK from April 2025?
The national living wage for over-21s will go up from £11.44 an hour to to £12.21. The rise is worth £1,400-a-year for full-time workers aged 21 and over.
In addition, the national minimum wage will increase from £8.60 to £10 per hour for 18 to 20-year-olds – the largest increase in the rate on record.
The rates are still significantly below the London Living Wage, a voluntary salary that some employers have signed up to pay to reflect the higher cost of living in the capital.
This rate went up to £13.85 per hour, from £13.15, earlier this month.
Here is how the minimum wage in the UK compares with other western countries.
How does the UK's minimum wage compare with other western countries?
Britain compares favourably in the world rankings and, according to World Population Review, is behind only Australia and New Zealand.
Using the review’s data, here is the top 10 for the minimum wage in the world and a few other select countries:
1. Australia: £14.01
2. New Zealand: £12.70
3. United Kingdom: £12.21 (This is the national living wage – the highest tier of the minimum wage. Lower rates exist for younger workers.)
4. Luxembourg: £11.93
5. Germany: £11.72
6. Argentina: £11.52
7. Belgium: £11.28
8. France: £10.87
9. Ireland: £10.80
10. Netherlands: £9.27
...
18. Japan: £6.71
19. Spain: £6.49
23. United States: £5.61
Most countries do not have a minimum wage. Based on average wages for the bottom bracket of earners Sudan came last in the world for hourly pay on £0.01.
