Minimum wage – hints as to April 2025 increases

The Low Pay Commission (LPC) issued a policy paper on 5 September 2024 in response to the Labour Government’s new remit, published in July 2024.  The LPC is an independent public body that provides guidance and advice to the Government regarding the National Minimum Wage (NMW).

Important points for employers to note from the paper, which are due to come into effect in April 2025, include:

• A proposal to reduce the gap between the adult rate and the 18-20 year old rate with a view to an eventual abolition of the 18-20 year old rate, so that the same minimum wage rate applies to everyone aged 18 and over
• The LPC recommend the rates for 16-17 year olds and apprentices would be retained
• The LPC estimates that in line with the remit stating the NMW should not fall below two-thirds of median hourly earnings, an increase to approximately £12.10 an hour would be required in April 2025, a 5.8% increase from the current £11.44 rate. However, this figure is subject to change, since their March 2024 estimate has already increased.

The LPC continues to gather its evidence in preparation to submit its recommendations to the Government by the end of October 2024, to take effect in April 2025.  We will be keeping a close eye out for the recommendations once published.

If you require assistance with national minimum wage or general employment law queries,  please contact a member of our team.

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