National Minimum Wage Increase 2026

From 1 April, the National Minimum Wage and National Living Wage rates have increased across England and Wales, meaning employers must ensure payroll and employment practices remain fully compliant.

While annual increases are expected, many businesses underestimate the wider HR risks that can arise beyond simply updating hourly pay rates.

What has changed?

Employers must now ensure all workers are paid at least the updated statutory minimum rate applicable to their age group or apprenticeship status from today.

Failure to implement the increase correctly can result in:

• HMRC investigations

• repayment orders

• financial penalties

• reputational damage

Common risks employers overlook

Minimum wage compliance is not limited to basic hourly pay. Issues often arise where:

• unpaid working time is not accounted for

• salary deductions reduce pay below minimum thresholds

• training time is unpaid

• staff arrive early or stay late without pay adjustments

• salaried contracts no longer meet hourly equivalents

Why HR processes matter

This change is a reminder that payroll, contracts, working hours and management practices must work together. Managers should understand how working time is recorded and monitored to avoid accidental breaches.

Regular HR reviews and clear policies help businesses stay compliant while maintaining fair and transparent workplace practices.

If you are unsure whether your current arrangements remain compliant, reviewing contracts and pay structures now can prevent problems later.

Leo HR provides practical HR support to employers across Salisbury, Wiltshire and England and Wales.