The chancellor has confirmed that the minimum wage is set to rise by 6.7% next year, reaching £12.21 an hour, ahead of today’s budget. This increase is more considerable than many anticipated, and combined with rising employers’ national insurance contributions, it will place a heavy burden on businesses of all sizes and sectors. Employees aged 18 to 20 and apprentices will also see their minimum hourly pay increase.

How much is the minimum wage going up?

• The minimum wage for people over 21, officially known as the National Living Wage, will rise by 6.7%, from £11.44 to £12.21, from April 2025. This year, it increased to £11.44 an hour from £10.42.

• The minimum wage for 18 to 20-year-olds will rise from £8.60 to £10.00. This rate was increased from £7.49 in April this year.

• Apprentices will get the biggest pay increase, from £6.40 to £7.55 an hour. Before this year, it was £5.28.

• The government sets the rates for the National Living Wage and National Minimum Wage every year, with the new rates taking effect in April of the following year.

The Impact on Productivity

For many, this is a wake-up call to reassess productivity strategies and offset this impact and further increases in the minimum wage. Metro provides a raft of productivity-enhancing software tools that can not only increase operational efficiency but also help reduce costs, enhance the customer experience, and grow sales and profitability.

Your Next Step

Investing in efficiency and innovation will be the key to sustaining your business through these changes and beyond. Metro has been developed to help you ‘do business better’.

Want to Find Out More?

Contact RMS today to discuss how Metro can help boost your operational productivity and plan for these upcoming changes. Read here to see more on the 2024 Budget from the BBC website.