Millions of employees are set to experience an increase in the minimum wage starting in April of this year. The minimum wage refers to the lowest hourly pay rate mandated by law that employers must adhere to for both full-time and part-time workers, with the amount varying based on the worker’s age.
Effective April 2026, the minimum wage for individuals aged 21 and above will see a 4.1% rise from £12.21 per hour to £12.71 per hour. Those aged between 18 and 20 will witness their rate increase from £10 per hour to £10.85 per hour. For individuals under 18 or apprentices, the minimum wage will increase from £7.55 per hour to £8 per hour, although it’s worth noting that many employers already pay above the minimum wage.
The announcement of this wage hike was made in November 2025 by Chancellor Rachel Reeves, who emphasized the importance of ensuring proper compensation for individuals on lower incomes. The minimum wage is termed the National Living Wage for those aged 21 and above, while those under 21 receive the National Minimum Wage.
It’s vital to understand that minimum wage rates do not apply to self-employed individuals, volunteers, or company directors. Some companies choose to pay the Real Living Wage, which is a voluntary wage determined based on the cost of living and typically exceeds the statutory minimum wage. The Real Living Wage is set to increase to £13.45 per hour outside London and £14.80 per hour within London, with employers required to implement these new rates by May 2026.
If you suspect you are being underpaid, start by reviewing your payslip. If it appears that you are not receiving at least the minimum wage, address the issue with your employer initially to provide them with the opportunity to rectify the situation. If the matter remains unresolved, you have the option to seek assistance from the Advisory, Conciliation and Arbitration Service (ACAS), an independent UK government body, to explore further steps.
As a last resort, you can take legal action against your employer by going to a tribunal, but it’s advisable to seek advice from ACAS or Citizens Advice first to understand the associated costs. Alternatively, you can report your employer to HMRC, which may lead to an investigation and potential fines if they are found to be in violation of minimum wage regulations.
HMRC has the authority to take legal action on behalf of the worker against non-compliant employers. According to ACAS guidelines, you cannot pursue the same issue through two separate legal processes. It’s essential to be informed and take appropriate steps to ensure fair compensation in the workplace.