Unveiled at last year's Budget, the 6.7% increase to the National Living Wage will be worth £1,400 a year for an eligible full-time worker. 

The National Minimum Wage for 18-20-year-olds is also set to increase by £1.40 to £10.00 per hour – a record increase which means full-time younger workers eligible for the rate will see their pay boosted by £2,500 a year. 

In addition, the minimum hourly wage for an apprentice is set to be boosted this year, with an 18-year-old apprentice seeing their minimum hourly pay increase by 18.0% from £6.40 to £7.55 an hour.      

In response, TUC general secretary Paul Nowak, said: ‘This government is delivering on its promise to make work pay. The increase in the national minimum wage will make a real difference to the lowest paid at a time when one in six are skipping meals to get by. And moving to end the outdated and unfair youth rates will give young workers a boost up and down the country.' 

Jason Davenport, chief executive of The Chartered Institute of Payroll Professionals (CIPP), said: ‘With continued pressure on employers, it's imperative that we ensure the new rates are understood, implemented and paid to workers correctly.  

‘Compliance can be complex with issues for employers to be alert to around, for example, salary sacrifice arrangements.'  

The CIPP is urging employers and agents to get their payroll processes ready for 1 April 2025.