The National Minimum Wage went up on April 1st 2026. That’s great news for employees on the lowest incomes. But it’s no joke for employers.
Employees earning the Minimum Wage will be glad of the extra money – especially with the cost of living back in the headlines, and energy costs expected to rise. Many households are struggling to afford the essentials and any extra support is good news.
But businesses are already feeling the squeeze, thanks to increases in National Insurance, business rates and statutory sick pay. Employers are having to find ways to do more with less. This won’t make things any easier.
In this blog, we’ll tell you what’s changed and how employers can offset some of the cost.
| National Minimum Wage from April 1st 2026 | Annual increase (£) | |
| 21 and over | £12.71 | £0.50 |
| 18–20 year olds | £10.85 | £0.85 |
| 16–17 year olds | £8.00 | £0.45 |
| Apprentices | £8.00 | £0.45 |
If your company also employs middle and higher earners, some salary sacrifice benefits can help you offset the rise in National Minimum Wage.
Pension salary sacrifice can save employers tens of thousands a year by reducing your National Insurance contributions. Even with the planned cap on savings from 2029, the average business could save £26,250 a year*.
Even better, pension salary sacrifice helps employees save money and build up bigger pots for retirement. It’s a rare win-win for everyone!
Try our FREE salary sacrifice savings calculator to find out how much you and your employees could be saving. Get your results in seconds.
Salary sacrifice can seriously help your employees with the cost of living too. Mintago has the most salary sacrifice benefits in one platform, including childcare, holiday travel, EVs, home appliances and more.
Chat to one of our experts to find out which salary sacrifice benefits would work best for your company.
*based on 100 employees, with a 5% contribution