Announced in the Autumn Budget on the 27th October, the National Minimum Wage (NMW) is set to increase across each age group from April 2022.

This is in aid of supporting the lowest-paid workers who have struggled most during the pandemic, the NMW has been significantly increased by 6.6%, representing an annual pay rise of more than £1000 for full time workers over the age of 23.

  Current Rate Increased Rate from April 2022
National Living Wage (Workers aged over 23) £8.91 £9.50
21-22 £8.36 £9.18
18-20 £6.56 £6.83
16-17 £4.62 £4.81
Apprentice £4.30 £4.81

These higher rates mean that the new NMW becomes relevant to many more employees, whether they are paid hourly or salaried.

It is expected that once the new increase takes place next year, full time workers working 40 hour weeks will be on a minimum salary of just shy of £20,000 per annum.

Employers have been informed to make sure they have a system in place to flag when an employee is approaching their 23rd birthday to make sure that their salary reflects the increase of NMW.

Employers can be fined up to 200% for NMW breaches and not reviewing their employees wages. Facing criminal prosecution is also a possibility.

If you need further advice on this or other announcements made in the Autumn Budget, please get in touch with us at