UK Employment Insights: April 2025 National Minimum Wage Increases – A Guide for Employees

Eu-Fern Lai, Trainee Solicitor

Fern works across a range of matters, including family, employment, higher education, civil claims for rape and sexual assault, and historical child sexual abuse.

The National Minimum Wage (“NMW”) increased once again on 1 April 2025. While employers will no doubt be mindful of the relevant changes to avoid potential penalties levied by HMRC in the event of underpayment, employees should similarly take note to ensure they are adequately remunerated for their work.

The new hourly rates

Those aged 21 and over who are paid at the ‘National Living Wage’ will see their hourly minimum wage will increase from £11.44 to £12.21, for a total increase of £0.77.

For those aged 18 to 20, hourly minimum wages will increase from £8.60 to £10.00 for the most sizeable increase of £1.40.

Those aged 16 to 17 will see their hourly minimum wages increase from £6.40 to £7.55, for a total increase of £1.15. The hourly minimum wage that applies to those in this category will also apply to apprentices, save for certain exceptions as laid out below.

Rates for apprentices

The applicable hourly minimum wages for apprentices have understandably caused confusion due to the prescribed age requirements.

Apprentices who qualify for the National Minimum Wage (NMW) must be either on an official apprenticeship scheme or have a contract of apprenticeship.

If an apprentice is 19 or younger, or is in the first year of their apprenticeship, they must be paid the new apprentice minimum wage of £7.55 – this is the same rate for all 16- to 17-year-old workers.

If the apprentice is 19 or older and has completed the first year of their apprenticeship, they must be paid the full minimum wage for their age group – not the £7.55 apprentice rate.

For example, during the first year, all apprentices get £7.55. After that, if they’re 18 or older, they must be paid according to their age group.

Employers should therefore make sure that apprentices aged 18 and over are being paid the correct rate for their age.

What can I do if I have been underpaid?

In the event that you have been underpaid (i.e less than the National Minimum Wage) before or after 1 April 2025, you should follow the below steps to resolve the issue.

• You should firstly check that you are getting the right pay, by referring to your payslips and employment contract. You can also employ the use of the National Minimum Wage and Living Wage calculator on gov.uk. You must ensure that you keep notes of what has happened and gather copies of your payslip, timesheets, or rosters.

• You should try to resolve the issue with your employer informally.

• If raising your concerns informally does not prove fruitful, you can raise a formal grievance with your employer by using the internal grievance procedure. This means that you would raise a formal complaint with your employer, setting out why they have erred in underpaying you. Refer to your grievance policy for further information.

• If your complaint or grievance still does not result in a positive outcome, you can make a complaint to HM Revenue and Customs (“HMRC”), who are able to assist with taking action against your employer to obtain monies owed to you. HMRC provides workers with a helpful online form to make such complaints.

• Alternatively, you can consider making a claim to the Employment Tribunal. In order to do so, you should get in touch with an employment solicitor or with the Advisory, Conciliation and Arbitration Service (“ACAS”), who are an independent public body funded by the government. ACAS will be able to assist with preliminary negotiations with your employer.

You should note that there are strict time limits for bringing claims in the Employment Tribunal, also known as the ‘statute of limitations’. The usual time limit for unpaid wage claims in the Employment Tribunal are three months less one day. You may also be able to bring a claim for unpaid wages in the civil small claims court, which have a longer time limit of six years. However, we advise that you consult with a solicitor who can provide you with the best advice on time limits and the choice of court.