From 1 April 2026, new National Minimum Wage (NMW) rates will come into force, and it is essential that employers act now to ensure compliance. Failing to implement the correct pay rates can expose your business to employee grievances, financial penalties, and enforcement action by HMRC.
The updated rates are as follows:
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National Living Wage (21 and over): £12.71 per hour
- 18–20 rate: £10.85 per hour
- 16–17 rate: £8.00 per hour
- Apprentice rate: £8.00 per hour
These increases form part of the government’s ongoing commitment to raising minimum pay, and employers should take proactive steps to ensure a smooth transition ahead of the April deadline.
What do employers need to do?
Preparation is key to minimising risk and maintaining positive employee relations. Employers should:
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Identify eligibility: Review your workforce to ensure all staff are correctly categorised according to their age and apprenticeship status.
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Update payroll systems: Make the necessary adjustments in advance of the April payroll to reflect the new rates.
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Communicate clearly: Inform employees of any changes to their pay, helping to maintain transparency and trust.
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Audit younger workers’ pay: Double-check that employees under 21 are receiving at least the correct minimum rate.
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Review documentation: Ensure contracts of employment, policies, and procedures are up to date and aligned with the new rates.
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Seek professional advice: Engage with HR professionals, legal advisers, and payroll specialists to ensure compliance and avoid costly errors.
Taking these steps now will help safeguard your business against potential disputes and ensure you remain compliant with your legal obligations.
How Farleys can help
If you require advice or support in preparing for the upcoming changes, Farleys’ employment law team is here to help.
To discuss your situation with one of our employment law solicitors, please call 01254 606 008 or complete our online enquiry form and a member of the team will get in touch with you.
