News

Changes in employment

National Minimum Wage (NMW), Making Tax Digital and Compulsory pensions.

Changes have been made since 2018.

Up until March 2019 NMW for 18 to 20 year olds was £5.90. As of the 1^st of April 2026 for 18 to 20 year olds will be £10.85, an increase over 7 years of £4.95 per hour.

The increase for apprentices has gone up from £3.70 per hour to £8 per hour from 2019 to April 2026.

For those 21 and over from 1^st of April 2026 NMW will go up to £12.71, as of March 2019 the NWM for those 25 and over was £7.83.

Employer’s National Insurance (NI) contributions from April 2025, raising the rate from 13.8% to 15% and lowering the Secondary Threshold (where employers start paying) from £9,100 to £5,000 annually, though the Employment Allowance increased to £10,500 to help small businesses offset these costs, as announced in the 2024 Autumn Budget.

Below is a quote from the government website regarding the new changes from April 2026 regarding Making Tax Digital.

“Making Tax Digital for Income Tax starts in April 2026 for sole traders and landlords with qualifying income over £50,000.

·        Making Tax Digital for Income Tax goes live on 6 April 2026 – supporting the government’s Plan for Change to deliver economic growth”

UK compulsory workplace pensions (Automatic Enrolment) began in October 2012, phased in by employer size, with all eligible employees now included by 2018, making it mandatory for most workers to save for retirement, though they can opt-out. The system, stemming from the Pensions Act 2008, was a response to declining pension saving, gradually increasing contribution rates until reaching the full 8% (3% employer, 5% employee) by April 2019. 

National Minimum Wage and National Living Wage rates

The hourly rate for the minimum wage depends on your age and whether you’re an apprentice.

This page is also available in Welsh (Cymraeg).

You must be at least:

·        school leaving age to get the National Minimum Wage

·        aged 21 to get the National Living Wage - the minimum wage will still apply for workers aged 20 and under

Current rates

The rates change on 1 April every year.

Apprentices

Apprentices are entitled to the apprentice rate if they’re either:

·        aged under 19

·        aged 19 or over and in the first year of their apprenticeship

Example

An apprentice aged 21 in the first year of their apprenticeship is entitled to a minimum hourly rate of £7.55.

Apprentices are entitled to the minimum wage for their age if they both:

·        are aged 19 or over

·        have completed the first year of their apprenticeship

Example

An apprentice aged 21 who has completed the first year of their apprenticeship is entitled to a minimum hourly rate of £12.21.

Previous rates

The following rates were for the National Living Wage and the National Minimum Wage from April 2018.

Rates from 1 April 2024

From 1 April 2024 the National Living Wage has been for those aged 21 and over.

Rates between 1 April 2021 and 31 March 2024

Between 1 April 2021 and 31 March 2024 the National Living Wage was for those aged 23 and over.

Rates before 1 April 2021

Before 1 April 2021 the National Living Wage was for those aged 25 and over.

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