A Timely Reminder on the 2026 National Minimum Wage Increases

April marks the start of a new tax year, and with it comes an important update for all employers. From 1 April 2026, the National Minimum Wage and National Living Wage will rise, and now is the ideal moment to make sure your organisation is fully prepared.

These increases will affect payroll, budgeting and potentially wider workforce planning, so it’s essential to review the new rates and ensure your processes remain compliant.

The New Minimum Rates from 1 April 2026

• £12.71 per hour – National Living Wage (age 21+)
• £10.85 per hour – Ages 18–20
• £8.00 per hour – Ages 16–17
• £8.00 per hour – Apprentice rate

The increase to the National Living Wage alone equates to an extra 50p per hour, which can significantly impact annual staffing costs when applied across your workforce.

To stay compliant and avoid unintended underpayments, employers should take this opportunity to review the following:

1. Payroll and Hourly Rates

Check that all employees’ rates of pay align with the new statutory minimums and update systems ahead of April to ensure a smooth transition.

2. Salaries Near the Threshold

If you have salaried employees whose hourly equivalent is close to the minimum wage, review their arrangements to ensure they remain compliant once the new rates take effect.

3. Budgeting and Cost Forecasts

Rising wage costs may require updates to financial forecasts, departmental budgets and workforce planning. It’s helpful to review charge-out rates, service pricing or cost models if you operate in sectors reliant on hourly or temporary staff.

4. Temporary and Agency Labour

If your business uses temporary workers, ensure your charge rates and margins still work with the increased statutory pay levels.

Minimum wage compliance continues to be a key focus for HMRC, and enforcement activity has increased in recent years. A proactive review now helps minimise compliance risks and ensures your payroll is accurate from day one of the new tax year.

All hours worked from this date must be paid at the updated statutory rates.

If you’d like support reviewing your workforce costs, ensuring compliance or updating employment documents, hr inspire is here to help with practical, expert HR guidance delivered in a clear and accessible way .