The National Living Wage and National Minimum Wage rates have increased, but not every employee is guaranteed this basic pay
News Lauren Haughey Lifestyle and Money Reporter 04:30, 04 Apr 2025
Over three million UK workers are set to enjoy a substantial pay rise from this month, although many will be left out. Chancellor Rachel Reeves unveiled the wage hike for both the National Living Wage and the National Minimum Wage in October's Budget, aiming to ensure more equitable salaries.
The National Living Wage is a higher obligatory rate for those aged 21 and over, while the National Minimum Wage is the lowest legal hourly pay for other workers of at least school-leaving age. However, it's crucial to note that not all workers are guaranteed this minimum pay - including 15 job categories.
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You may be surprised to hear that company directors, students on one-year work placements, and even members of the Armed Forces are among them. People in prison are also excluded.
The Government lists the following:
- Share fishermen
- Company directors
- Higher and further education students on work experience or a work placement up to one year
- People who are volunteers or voluntary workers
- People working on a Jobcentre Plus Work trial for up to six weeks
- Workers younger than school leaving age (usually 16)
- Prisoners
- Self-employed people running their own business
- Members of the armed forces
- Workers on a government employment programme, such as the Work Programme
- People living and working in a religious community
- Family members of the employer living in the employer’s home
- Workers on government pre-apprenticeships schemes
- People shadowing others at work
- People on the following European Union (EU) programmes: Leonardo da Vinci, Erasmus+, Comenius
On the flipside, employees who are entitled to the correct minimum wage generally include:
- Offshore workers
- Trainees, workers on probation
- Casual labourers, for example someone hired for one day
- Apprentices
- Agricultural workers
- Part-time employees
- Workers and homeworkers paid by the number of items they make
- Foreign workers
- Disabled workers
- Agency workers
- Non-family members living in the employer’s home who share in the work and leisure activities and are treated as one of the family, for example au pairs
- Seafarers
As of April 1, 2025, over three million workers are eligible for a pay rise, reports the Mirror. Apprentices and those aged between 16 and 17 have seen the most significant minimum wage increase, from £6.40 to £7.55 per hour - a substantial rise of 18%.
The minimum wage for those aged 18 to 20 has soared to a record £10 per hour, while those aged 21 and above are set to benefit from a 6.7% boost of 77p, taking the National Living Wage to £12.21 per hour – that's an extra £1,400 a year.
The minimum wage for those aged 18 to 20 has soared to a record £10 per hour, while those aged 21 and above are set to benefit from a 6.7% boost of 77p, taking the National Living Wage to £12.21 per hour – that's an extra £1,400 a year.
A complete list outlining these changes is below:
- Over-21s: £11.44 an hour to £12.21 an hour (6.7% increase)
- 18 to 20: £8.60 an hour to £10 an hour (16.3% increase)
- 16 to 17: £6.40 an hour to £7.55 an hour (18% increase)
- Apprentice: £6.40 an hour to £7.55 an hour (18% increase)
These changes are encompassed within the Government's Plan for Change. Earlier this week, Deputy Prime Minister Angela Rayner said: "This pay rise for over three million of the lowest paid workers was a priority for this government and means we’re already giving hard working people more money in their pockets and a proper wage increase worth over twice the rate of inflation.
"These changes are part of our Plan for Change – to raise living standards for people across the county, including apprentices and young people, giving them more job security and the huge pay boost they deserve too."
Chancellor Rachel Reeves also added: "In the last Parliament, living standards were the worst on record and sky-high inflation was crushing working people’s finances.
"Today we have raised the national minimum and living wages, meaning the lowest paid will receive an annual pay boost of up to £2,500 – something that wouldn’t have happened without my Budget last year.
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"Making work pay is good for workers, will strengthen businesses’ workforces, and will grow our economy for years to come. It’s a key milestone on my number one mission to get more money in people’s pockets as we deliver our Plan for Change."
