Ah yes — the National Minimum Wage and National Living Wage.
Two things that change more often than HMRC’s mind about what “simple payroll” looks like.
Every April, just when payroll folks are settling down with a nice cup of tea and a sense of calm, the government announces new rates and sends us all back into spreadsheet mayhem. And — because they love to keep us on our toes — we all know that when the Budget lands on November 26th, there’s every chance these numbers will change again.
(Thanks in advance, Chancellor. Truly.)
💬 National Living Wage vs National Minimum Wage (In Plain English)
The National Living Wage (NLW) now applies to anyone aged 21 and over — because apparently the government finally accepted that 21-year-olds enjoy luxuries like heating, food, and the odd night out.
Anyone younger falls under the National Minimum Wage (NMW), with separate rates for 18–20s, 16–17s and apprentices.
🧮 Hourly Rates from April 1, 2025
Here are the shiny new rates you actually need:
| Category | Hourly Rate |
| Aged 21 and over (National Living Wage) | £12.21 |
| Aged 18–20 | £10.00 |
| Aged 16–17 | £7.55 |
| Apprentice | £7.55 |
Yes, they’ve gone up again.
Yes, your payroll software needs updating.
Yes, at least one client will message you in shock because their wage bill looks different.
And yes, when the Budget is announced on November 26th, these figures may well do their annual game of musical chairs.
(We’ll all be refreshing GOV.UK with one eye closed, hoping for the best.)
💡 Why These Rates Matter
Paying below these rates — even accidentally — can land employers in serious hot water. HMRC doesn’t just issue fines; they also love to name and shame underpaying employers online.
No one wants that level of publicity.
It’s also important to remember that minimum wage applies to more than just hours on-site — training time, some travel between jobs, and certain waiting periods can all count as working time.
❤️ The Love Payroll Bit
At Love Payroll, we stay on top of every rate rise, update, rumour, whisper, and “urgent HMRC announcement” so you don’t have to.
We make sure:
✔ Your payroll stays compliant
✔ Your employees are paid correctly
✔ Your software stays updated
✔ And you can ignore the Budget panic (because we won’t)
You run your business — we’ll keep your payroll calm, compliant, and running like clockwork.
