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This letter should be given to an employee informing them of a pay increase due to an increase in the National Minimum or Living Wage rates.
The letter specifies the new rate of pay and the dates it will be effective.
[Sender name]
[Sender address]
[date]
[Recipient name]
[Recipient address]
Dear [Recipient first name],
Salary increase
I'm writing to inform you that your salary will be adjusted to reflect the increase in the national [minimum | living] wage effective [date].
[choose one of the following alternatives based on the letter's intended recipient]
[Option 1 - worker aged 21 and over]
From [date], the rate of the national living wage for workers who are aged 21 or over is increasing from £[amount] to £[amount] per hour.
[Option 2 - worker aged 18 to 20]
From [date], the rate of the national minimum wage for workers who are aged 18 to 20 is increasing
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A National Minimum or Living wage increase letter is a document that is sent by an employer to their employees to inform them of an upcoming increase in the national minimum or living wage. This letter is typically sent out before the increase takes effect and is intended to notify employees of their new wage rate. The letter may also include information about any changes to employee benefits or policies that may accompany the wage increase.
This is an important communication tool that allows employers to inform their employees of changes to their compensation and helps ensure compliance with legislation.
Minimum wage rates can be found at https://www.gov.uk/national-minimum-wage-rates.
The National Minimum Wage Act 1998: This sets out the legal minimum hourly rates that employers must pay their workers, and the criteria for determining eligibility for the minimum wage. Employers must ensure that they are paying their employees at or above the minimum wage rate.
The Employment Rights Act 1996: This outlines the statutory rights that employees have with regard to pay, including the right to receive a written statement of pay and deductions.
The Working Time Regulations 1998: This sets out the rules on maximum weekly working hours and rest breaks, which can impact the calculation of the minimum wage.
The Equality Act 2010: This prohibits discrimination on the grounds of age, gender, race, religion, disability, and other protected characteristics in relation to pay and employment. Employers must ensure that any pay increases are implemented fairly and without discrimination.
The Employment Relations Act 1999: This sets out the requirements for informing and consulting employees on employment matters, including changes to pay and conditions. Employers must consult with their employees on any changes to the minimum wage rate and ensure that they are given notice of any upcoming increase.
The National Minimum Wage Regulations 2015: This provides additional guidance on the calculation and payment of the minimum wage, including the treatment of tips and deductions. Employers must ensure that they are following these regulations when implementing a minimum wage increase.
Yes. This template has been designed for organisations of all sizes, including small businesses, charities and growing employers. It follows UK employment law best practice and can be adapted to suit your organisation.
Our templates are developed with UK employment legislation, Acas guidance and HR best practice in mind and are reviewed and updated as relevant requirements change. However, every employment situation is different, so the template should be adapted to the circumstances and checked against the employee's contract and your organisation's procedures before use.
Yes, we highlight the areas of the document that you need to update with your own details, and where you need to make decisions to suit your situation. This saves you time and ensures that you meet best practice.
Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable format (such as .doc or .xls) so you can customise them easily, and in PDF format for easy sharing.
If you're looking for broader support, we also offer toolkits and library bundles that include the National living or minimum wage increase letter template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.
AI can produce a document quickly, but effective HR documentation needs to be more than well-written words. It needs to reflect relevant UK employment law, HR best practice, practical considerations and the circumstances in which it will be used. These resources have been professionally developed around that wider HR context, drawing on extensive practical experience, rather than simply generating a generic document from a prompt.
Darryl Horn, Chartered HR Director
Darryl is a Chartered HR professional with over 25 years' experience in senior HR and employee relations roles.
He has extensive practical experience of managing pay and benefits processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.
"Darryl provides support and advice with excellent judgement, and has a strong understanding of people, policies and UK employment legislation."
"He is someone I trust; consistent, dependable, and committed to doing things properly."
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