National Living Wage rises to £12.21 for over-21s
The 21-and-over hourly minimum increased by 6.7%, with even sharper rises for 18–20-year-olds as the government moves towards a single adult rate.
By Money Guide editorial team
Published:
The National Living Wage for workers aged 21 and over rose to £12.21 an hour on 1 April, a 6.7% increase worth around £1,400 a year for a full-time worker on the rate.
The 18–20 rate jumped 16.3% to £10.00 an hour — the largest single increase since the youth rates were introduced — narrowing the gap with the adult rate ahead of the planned move to a single adult NLW. The 16–17 and apprentice rate rose to £7.55.
Employers must also continue auto-enrolling eligible workers into a pension, with combined minimum contributions of 8% of qualifying earnings (5% employee, 3% employer).
The Low Pay Commission noted that, after several years of above-inflation rises, the headline NLW now sits at around two-thirds of median hourly earnings — the level the government has set as the long-run benchmark.