How the Changes to Minimum Wage Affect You in 2025

April 2025 marks an important date for workers across the UK, with significant changes coming to the National Minimum Wage (NMW) and National Living Wage (NLW) rates. These changes will directly impact the earnings of thousands of workers across various industries.

The New Minimum Wage Rates for 2025

From 1st April 2025, the minimum wage rates will increase across all age brackets:

It's important to note that the National Living Wage now applies to workers aged 21 and over, a change from previous years when it applied to older age groups. The substantial percentage increases for younger workers suggest a policy aimed at improving the financial situation of young adults entering the workforce.

For apprentices, the minimum wage rate applies to those under 19, or those aged 19 or over who are in the first year of their apprenticeship. After completing their first year, apprentices aged 19 or over become entitled to the minimum wage rate for their age group.

​Use this handy calculator to see an approximation of your new pay when the new rates come in to effect:

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How These Changes Apply to Different Types of Temporary Work

The minimum wage increases will affect various categories of temporary workers differently:

Agency Workers

Agency workers are entitled to at least the National Minimum Wage or National Living Wage for every hour worked. After 12 weeks in the same role with the same hirer, they become entitled to the same pay and working conditions as if they had been directly recruited by the hirer. See our page on AWR (Agency Worker Regulations) for more information.

Employment agencies cannot make deductions that would reduce an agency worker's hourly rate below the minimum wage (except for accommodation, where a specific offset is permitted).

Zero-Hours Contract Workers

Despite not having guaranteed working hours, zero-hours contract workers are entitled to the National Minimum Wage or National Living Wage for all hours actually worked. They also have rights to paid annual leave and protection against unlawful wage deductions.

Seasonal Workers

Seasonal workers in sectors like tourism, agriculture, and retail are equally entitled to at least the minimum wage rate corresponding to their age. Even in sectors where pay might be calculated based on performance or amount of work completed (piecework), total earnings must meet or exceed the minimum wage threshold for the total hours worked.

Temporary Contract Workers

The duration of a temporary contract has no bearing on the right to minimum wage. Temporary contract workers also have other employment rights, including holiday pay and protection against discrimination.

Gig Economy Workers

If classified as a "worker" under UK employment law, gig economy workers are generally entitled to at least the minimum wage for hours worked. Following legal challenges, some gig economy companies have begun including minimum wage and holiday entitlement for their workers.

Financial Impact on Temporary Workers

The 2025 minimum wage increases will bring tangible financial benefits to temporary workers. For example:

• A full-time temporary worker aged 22, working 37.5 hours per week, will see their gross weekly income rise from £429.00 to £457.88 – an increase of £28.88 per week or approximately £125.00 per month.

• An 18-year-old working part-time for 20 hours a week will see their weekly earnings increase from £172.00 to £200.00 – a gain of £28.00 per week or about £121.24 per month.

However, temporary workers should consider that with increased income, more of their earnings may become subject to income tax if they earn above the tax-free personal allowance (set at £12,570 for the 2025/26 tax year). This could moderate the overall increase in take-home pay.

There may also be implications for benefits. Many state benefits in the UK are means-tested, and an increase in income could affect eligibility or the amount received.

Rights of Temporary Workers Regarding Minimum Wage

All temporary workers have the legal right to receive at least the National Minimum Wage or National Living Wage, regardless of their contract type. They are also entitled to an itemised payslip that clearly details their pay rate, hours worked, and any deductions.

To ensure correct payment, temporary workers should:

• Review payslips to verify their hourly rate meets the minimum wage for their age

• Confirm all worked hours have been accurately recorded

• If not paid hourly, calculate their average hourly rate by dividing total pay by total hours worked

If a temporary worker believes they're being paid less than the correct minimum wage, they should:

1. Discuss concerns directly with their employer or recruitment agency

2. If unresolved, raise a formal grievance following the company's procedure

3. Contact the ACAS helpline for free and confidential advice

4. Consider making a formal complaint to HM Revenue and Customs (HMRC)

5. As a last resort, make a claim to an employment tribunal (being aware of strict time limits)

Temporary workers should maintain their own records of hours worked, pay received, and any communication with employers about pay. This can serve as valuable evidence if a pay dispute arises.

Finding Support and Further Information

For additional support and information about minimum wage changes and employment rights, temporary workers can access:

• UK Government Website on National Minimum Wage and Living Wage

• ACAS (Advisory, Conciliation and Arbitration Service)

• Citizens Advice

At Select Recruitment, we are committed to ensuring fair pay and good working conditions for all temporary workers we place. Our team has a deep understanding of UK employment law and minimum wage regulations.

If you're seeking guidance on the 2025 minimum wage changes or looking for new temporary opportunities, we encourage you to reach out to our experienced consultants who are ready to discuss your individual needs and available opportunities.