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National Minimum Wage: understanding the April 2026 amendments

Following the Government’s announcement under Labour’s Plan to Make Work Pay, National Minimum Wage rates will increase from 1 April 2026. Employers should begin reviewing pay structures now to ensure compliance.

 

  National Minimum Wage
21 and over  £12.71
18-20 year old rate £10.85
16-17 year old rate £8.00

 

How to prepare for the changes

To ensure your organisation is ready for the new rates, consider taking the following steps:

  • Carry out a full review of salaries before 1 April 2026
  • Implement pay increases where required to meet the new thresholds (and don’t forget to increase wages if a member of staff moves into another age bracket throughout the year)
  • Communicate clearly with employees about any wage updates
  • Plan budgets strategically to accommodate increased staffing costs

Benefits of fair and competitive wages:

Paying fair wages is not only a legal requirement – it also supports a stronger and more engaged workforce. Benefits include:

  • Higher employee satisfaction and loyalty
  • Improved talent attraction and retention
  • Increased productivity
  • Reduced absence levels
  • A stronger reputation as a fair and responsible employer

Employers who fail to pay the National Minimum Wage can face significant fines and enforcement action. Taking time now to review your pay structure will help ensure your organisation remains compliant when the new rates take effect on 1 April 2026.