The UK government is set to implement a new round of wage adjustments starting June 2025. This update affects workers across all age brackets, reflecting a continued push towards fairer pay. With the national living wage UK seeing a considerable lift, it’s vital for employees, employers, and job seekers to stay informed about the latest salary changes.
Why Is the UK Minimum Wage Increasing in June 2025?
The UK minimum wage increase June 2025 is part of the government’s long-term strategy to address inflation, improve living standards, and align earnings with the cost of living. The changes follow recommendations from the Low Pay Commission and reflect ongoing efforts to support low-income workers. With rising costs in housing, transport, and food, this wage hike comes at a critical time for millions of households.
The rise also supports the government’s broader economic goals—encouraging work, reducing in-work poverty, and stimulating consumer spending.
New UK Minimum Wage Rates by Age Group (Effective June 2025)
Below is a detailed breakdown of the new national minimum and living wage rates set to take effect in June 2025:
Age Group |
New Hourly Rate (from June 2025) |
Previous Rate (2024) |
|---|---|---|
21 and over (National Living Wage) |
£11.64 |
£10.42 |
18 to 20 |
£8.85 |
£7.49 |
Under 18 |
£6.67 |
£5.28 |
Apprentices |
£6.67 |
£5.28 |
This adjustment marks a significant boost, especially for young workers and apprentices, narrowing the wage gap between age groups.
How This Impacts Employers and Workers
For employers, these changes mean adjusting payroll systems and budgets to accommodate the increase. While it may put short-term pressure on small businesses, higher wages can result in improved staff retention, morale, and productivity.
Employees—particularly those on lower incomes—will benefit from greater take-home pay. This is especially relevant amid ongoing inflationary trends in early 2025. For example, a 21-year-old working 40 hours a week will now earn approximately £490 per week, up from about £416, marking a significant bump in monthly income.
National Living Wage UK: What It Means Going Forward
The national living wage UK is no longer limited to those over 23. As of this change, it applies to all workers aged 21 and over. This shift not only boosts earnings for younger adults but also signals a redefined standard of fair pay in the UK labour market.
It’s part of a broader trend seen in other economies too, where the push for equitable wages is gaining momentum. As automation and AI reshape the job market, human labour is being revalued in sectors like hospitality, care, and retail.
Preparing for Salary Changes: What to Expect Next
These salary changes are expected to influence job advertisements, employee contracts, and hiring budgets. Businesses in high-turnover sectors like retail and food services should prepare early. For job seekers, this presents an opportunity to revisit wage expectations and evaluate potential roles with the new baseline in mind.
The government has also indicated a commitment to reviewing the wage annually, with a focus on making real-terms improvements tied to economic conditions.
FAQ
What is the national living wage in the UK from June 2025?
The new national living wage for workers aged 21 and over is set at £11.64 per hour starting June 2025.
When do the new wage rates come into effect?
The updated rates are effective from 1st June 2025, as announced by the Department for Business and Trade.
Will apprentices get a pay rise too?
Yes, the apprentice minimum wage will rise to £6.67 per hour, matching the under-18 rate.
How does the UK minimum wage compare internationally?
The UK’s rate is among the highest in Europe, reflecting its commitment to maintaining strong worker protections.
Are employers legally required to follow these changes?
Yes. Employers must comply with the new rates or risk penalties, including back-pay orders and fines.
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