5.7% Increase in Minimum Wage is Expected in 2025
Additionally, there are plans to revise the national minimum wage rates for young workers in the 18-20 age group. Currently set at £8.60, this rate is expected to be gradually increased starting in 2025, with the aim of eliminating age-based wage disparities. This adjustment seeks to align the wages of workers in the 18-20 age group with the national living wage.
During the 2024-2025 period, it is anticipated that the national living wage for workers aged 21 and over could reach a level between £11.82 and £12.39. According to estimates, the most likely figure is projected to be £12.10. This increase is primarily attributed to robust wage growth and the current economic conditions.
While a more significant increase is expected for young workers aged 18 to 20, it is noted that the overall minimum wage increases may surpass the adjustments needed to keep pace with inflation. Given the current economic conditions, these increases are regarded as a benchmark in the minimum wage determination process.
In conclusion, the changes to the minimum wage are expected to take effect in April 2025. The business community will submit these proposals to the government by the end of the year, considering their impacts on competitiveness, the labor market, and the overall economy. Stakeholders will have the opportunity to express their views through designated channels during this process.