The government has announced changes to the National Minimum Wage which will take effect in April 2026. 

• National Living Wage for workers over 21 will be £12.71. This is an increase of 4.1% and will increase gross annual earnings of a full-time worker by £900.
• National Minimum Wage for 18-20 year olds will be £10.85. This is an increase of 8.5% and will increase gross annual earnings by £1,500.
• National Minimum Wage for 16-17 year olds will be £8. This is an increase of 6%.

The increases to the National Minimum Wage (NMW) and National Living Wage (NLW) follow the recommendations of the Low Pay Commission, which the government has accepted in full. The government has also indicated that it is intending to phase out the 18-20 band and will move towards establishing a single adult rate for all workers 18 and over.

The government has also announced changes to increases to the statutory limits on pay as follows:

• Statutory Maternity Pay, Statutory Paternity Pay, Statutory Neonatal Care Pay, Statutory Adoption Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay will be increased to £194.32 from £187.18. This is an increase of 3.8%.
• Statutory Sick Pay will be increased to £123.25. This is an increase of 3.8%.

These changes are due to come into effect in April 2026: with NLW and NMW changing on 1^st April, and parental pay and sick pay expected to change on 6 April. This gives employers a short time to review their pay structures to ensure that they implement these changes for any affected employees, and where necessary plan to offset any additional costs.

Thank you to Emma Torok for all her help in preparing this post.