Nearly 45,000 Birmingham workers to get pay boost on this day

Nearly 50,000 low-paid workers in Birmingham will see their wages increase next year after the government announced a rise in the National Minimum Wage. Last week, chancellor Rachel Reeves outlined a 6.7 per cent increase in the minimum wage for over-21s as part of Labour's first Budget in nearly 15 years.

Since April 1 last year, employees aged 21 and over have been entitled to the National Living Wage which is currently worth £11.44-an-hour. This will increase to £12.21 on April 1 2025 and is expected to benefit around 44,800 workers in Birmingham, and 255,200 in the West Midlands.

Younger employees - aged between 16 and 20 - currently receive the National Minimum Wage which will also rise on the same day from £8.60 to £10-an-hour. Of the total working population living in Birmingham, 14 per cent currently earn less than the minimum wage, according to analysis by accounting firm GoForma.

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The government said the increase to the National Living Wage was worth £1,400-a-year for an eligible full-time worker and would help three million workers. Charlie Bailey, the co-founder of GoForma said: “The majority of occupations where salaries fall under the minimum wage are in retail, care, warehousing and transportation.

"These roles often have irregular hours, making it more difficult to keep a record of exactly what your hourly pay is. Although the 2025 minimum wage is £12.21-an-hour, this is calculated based on each individual pay cheque.

"So if you work an average of 40 hours per week and are paid monthly then your gross earnings must be at least £1,953.60. If you are worried about talking to your employer about being paid less than the minimum wage, bear in mind victimisation laws prevent an employer from treating an employee less favourably because they have challenged potentially illegal employment practices."

Any employer found to not be paying the correct amount under the National Living Wage can be fined by HMRC. Business owners, particularly smaller ones, have voiced concerns over the impact of higher wage bills and National Insurance contributions on their running costs.