{"id":190040,"date":"2024-08-26T06:40:50","date_gmt":"2024-08-26T05:40:50","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=190040"},"modified":"2026-05-05T02:55:48","modified_gmt":"2026-05-05T01:55:48","slug":"pay-rises","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/pay-rises\/","title":{"rendered":"Understanding Pay Rises in the UK"},"content":{"rendered":"\n<p>There is no law in Australia requiring employers to give staff pay rises, but employment law still shapes how and what you pay your people. Understanding your obligations helps you stay compliant and retain talent. This article explains some of the considerations you should consider when deciding whether to raise your employee&#8217;s pay.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is There a Pay Rise Law in the UK?&nbsp;<\/h2>\n\n\n\n<p>There is no law specifically about pay rises in the UK, despite your employees likely thinking they are due a pay rise annually. However, if you promise your employees specific pay raises or pay rise dates in their <a href=\"https:\/\/legalvision.co.uk\/employment\/employment-contracts\/\">employment contracts<\/a>, you create a contractual obligation that you legally must comply with.&nbsp;<\/p>\n\n\n\n<p>Although there is no statutory obligation to do so, it is still good practice to provide pay raises for long-term employees.&nbsp;<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2024\/11\/23002631\/Screenshot-2025-10-23-at-10.26.05-am.png\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">2025 Key UK Employment Law Changes<\/div>\n            <div class=\"body-text\">\n                <p>This factsheet outlines key developments in 2025 affecting workforce management.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2025\/01\/22052013\/LegalVision_2025-Key-UK-Employment-Law-Changes-Factsheet.pdf\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Why Should I Give My Employees a Pay Rise?<\/h2>\n\n\n\n<p>By offering a pay rise, it is likely your employees will:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>feel valued and work harder;<\/li>\n\n\n\n<li>feel more motivated, so carry out their jobs well; and<\/li>\n\n\n\n<li>stay with your business for longer.<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--idea\">\n    <p>Therefore, you could include a clause in your employment contracts to periodically give your workers a pay rise. The most common clauses stipulate that the employee will receive a pay rise annually.<\/p>\n<\/div>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar 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This applies if you meet the legal requirements to produce these, which an employment lawyer can advise you on.&nbsp;<\/p>\n\n\n\n<p>Gender pay gap reports detail the difference in what you pay men and women in your workforce. This includes their:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>salary;<\/li>\n\n\n\n<li>commissions;<\/li>\n\n\n\n<li><a href=\"https:\/\/legalvision.co.uk\/employment\/what-employers-need-to-know-about-bonuses\/\">bonuses<\/a>; and&nbsp;<\/li>\n\n\n\n<li>other work-related pay.<\/li>\n<\/ul>\n\n\n\n<p>Whilst your gender pay gap reports may evidence a difference in pay rises for men and women, you must not refuse a pay rise based on your employee\u2019s sex. This could be sex discrimination, which is illegal and could lead to you facing a tribunal claim.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Much Should I Pay My Employees?<\/h2>\n\n\n\n<p>As there is no law on pay rises in the UK, there is no set amount you can pay your employees. Instead, you can base this on a variety of factors. For example, the UK&#8217;s average salary in 2022 was \u00a332,300.<\/p>\n\n\n\n<p>However, employment law obliges you as an employer to pay your workers no less than the national minimum wage (NMW) where they qualify. Workers who do not qualify include, for example, those under 16 and <a href=\"https:\/\/legalvision.co.uk\/employment\/volunteers-workplace\/\">voluntary workers<\/a>. If you fail to pay workers who qualify for the NMW, you could receive a fine of up to \u00a320,000 per employee. Also, when your workers are 21 or over, you must pay them the National Living Wage (NLW). Rates for the NMW and NLW change on 1 April each year. The rate per hour is currently as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u00a36.40 for apprentices who are aged under 19 or over 19 but in their first year of apprenticeship;<\/li>\n\n\n\n<li>\u00a36.40 for those who are aged 16 and 17;<\/li>\n\n\n\n<li>\u00a38.60 for those who are aged 18, 19 and 20; and&nbsp;<\/li>\n\n\n\n<li>\u00a311.44 for those 21 years old and over.&nbsp;<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p dir=\"auto\"><strong>Key Statistics<\/strong><\/p>\n<ol dir=\"auto\">\n<li><strong>9.8%:<\/strong> Increase in the National Living Wage from April 2026, creating significant contractual and budgetary pressures for UK employers.<\/li>\n<li><strong>54%:<\/strong> Of businesses reported difficulties implementing pay rises while complying with both contractual terms and Equality Act obligations.<\/li>\n<li><strong>\u00a33.2 billion:<\/strong> Estimated additional annual wage cost to UK employers from the 2025\u20132026 National Minimum Wage uplifts.<\/li>\n<\/ol>\n<p dir=\"auto\"><strong>Sources<\/strong><\/p>\n<ol dir=\"auto\">\n<li>Low Pay Commission, National Minimum Wage Report\u00a0(2025)<\/li>\n<li>Chartered Institute of Personnel and Development (CIPD), Pay Trends and Legal Compliance Report 2025 (2025)<\/li>\n<li>Confederation of British Industry (CBI), UK Pay Rises in a Changing Economy 2026 (2026)<\/li>\n<\/ol>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>However, no law says you must give your staff a pay raise, although you may wish to do so for various reasons, such as retaining staff. If you detail that you will give pay raises in your staff\u2019s employment contracts, you have a legal duty to honour this. However, the law does say that you must record pay rises in your gender pay gap reports if you are required to produce these. <\/p>\n\n\n\n<p>While you may decide how much to pay your employees, there are some rules you must follow when deciding. For example, you must ensure that their pay rates meet the National Minimum Wage (NMW) and the National Living Wage (NLW) where applicable.\u00a0<\/p>\n\n\n\n<p>LegalVision provides ongoing legal support for businesses through our fixed-fee legal membership. Our experienced <strong><a href=\"https:\/\/legalvision.co.uk\/employment-lawyers-lp\/\">employment lawyers<\/a><\/strong> help businesses manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision\u2019s legal membership, call <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or <a href=\"https:\/\/legalvision.co.uk\/membership\/\" target=\"_blank\" rel=\"noreferrer noopener\">visit our membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1724650158192\"><h3 class=\"schema-faq-question\">Is there a law governing pay rises in the UK?<\/h3> <p class=\"schema-faq-answer\">There is no law in the UK that says you must give your employees a pay rise, but it is still best practice to do so. <\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1724650178470\"><h3 class=\"schema-faq-question\">When do I legally have to give my staff a pay rise as an employee?<\/h3> <p class=\"schema-faq-answer\">If your employment contracts detail that you will give your employees a pay rise, this creates a contractual obligation. As such, you must do so. <\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777946003473\"><h3 class=\"schema-faq-question\">When do NMW and NLW rates change?<\/h3> <p class=\"schema-faq-answer\">Rates update annually on 1 April.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777946028322\"><h3 class=\"schema-faq-question\">What happens if I don&#8217;t pay the NMW?<\/h3> <p class=\"schema-faq-answer\">You can face a fine of up to \u00a320,000 per employee.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>There is no law in Australia requiring employers to give staff pay rises, but employment law still shapes how and what you pay your people. Understanding your obligations helps you stay compliant and retain talent. This article explains some of the considerations you should consider when deciding whether to raise your employee&#8217;s pay. Is There<a href=\"https:\/\/legalvision.co.uk\/employment\/pay-rises\/\">Continue reading <span class=\"sr-only\">&#8220;Understanding Pay Rises in the UK&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13510,"featured_media":183554,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[35],"tags":[20,542,1978,2135],"class_list":["post-190040","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-small-business","tag-employees","tag-employee-entitlements","tag-pay-rise"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - 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