Human Resources

As April approaches, employers need to be aware of the National Minimum Wage (“NMW”) changes set to apply from 01 April 2026.

The annual increases to the NMW, which will apply from 01 April 2026, are as follows:

• National Living Wage (21 year olds and over): £12.71
• 18-20 year olds: £10.85
• Under 18s and apprentices: £8.00

The 8.5% increase in the 18-20 year old rate again narrows the gap between it and the National Living Wage (“NLW”), in anticipation of the NLW being extended to 18 year olds in the future.

Whilst the increase in wages is great news for employees, there is no doubt that employers may struggle once these changes come into force. It is essential for employers to carefully examine their position and seek specialist advice if they feel they will be unable to comply with the NMW increases and remain a viable business.

It is also important for employers to understand what payments count towards the NMW. For example, basic pay, bonuses and commission count towards NMW. Whereas, tips, service charges and premium payments do not count towards the NMW.

Please refer to the QCS National Minimum Wage Policy and Procedure for further details of which payments can count towards NMW.

What should you do now?

As always at this time of year, employers should undertake a pay review to ensure their current rates are compliant with NMW requirements and award a pay increase on 01 April 2026, if required to ensure future compliance. In addition, employers need to take into account workers’ dates of birth, so that each worker is paid appropriately according to their age band.

If you have any questions regarding the increase in NMW, or require help or guidance to ensure your business remains viable, please do not hesitate to contact a member of the AfterAthena team (part of the Napthens Group).