From 1 April 2026, the National Living Wage has gone up. If you have employees, your payroll needs to reflect the new rates straight away.
For workers aged 21 and over, the rate has increased to £12.71 per hour (up from £12.21). For 18 to 20-year-olds, it rises from £10.00 to £10.85, and for 16 to 17-year-olds and apprentices, the new rate is £8.00 per hour, up from £7.55.
If you pay the Real Living Wage — which is set independently and tends to be higher — that has risen to £13.45 per hour, up from £12.60.
If we manage your payroll, you don't need to worry — we've already updated your payroll to reflect the new rates, so your team will be paid correctly from their next pay date. Getting this wrong can result in HMRC penalties and reputational damage, so it's one of those things we make sure is always taken care of on your behalf.
If you have any questions about how the increases affect your business costs, or you'd like to explore whether our payroll service could take this off your plate entirely, just get in touch with your Client Manager.