National living or minimum wage increase due to age change letter template

£14.99

UK-specific • Editable • Instant download • 12 months' updates

The National Living or Minimum Wage Increase Due to Age Change Letter Template provides a clear way to notify an employee that their statutory minimum pay rate is increasing because they have reached a new age band. It explains the reason for the increase, the new rate of pay and when the change will take effect, giving the employee a clear written record of the change.

Use this template to:

  • Notify an employee of a statutory age-related pay increase.
  • Confirm the employee's new hourly rate and effective date.
  • Explain the change from one National Minimum Wage rate to another.
  • Communicate the move to the National Living Wage at age 21.
  • Provide a clear written record of the pay change.
  • Support accurate payroll and HR records.
National living or minimum wage increase due to age change letter template
2026 Reviewed

What's included in this template?

This template brings together the key information, sections and considerations you need to create a clear, comprehensive and professional HR document. Preview the document below.

  • Option for an employee reaching age 18
  • Option for an employee reaching age 21
  • Current and new hourly rate fields
  • Effective date of the increase
  • Clear explanation of the age-related change
  • Employee and employer details
Specifications
Access 12 months (includes updates)
Length 1 page • 188 words
Jurisdiction England, Wales and Scotland
Based on UK employment law, ACAS guidance
Last review 24/08/2026
Next review 24/02/2027
Delivery Instant download
Formats .doc · .txt · email

Download .doc

Copy [to paste]

Email
Template

[Sender name]

[Sender address]

[date]

[Recipient name]

[Recipient address]

 

Dear [Recipient first name],

National Living or Minimum Wage increase

[Option 1 – worker reaches the age of 21]

I'm writing to inform you that your rate of pay will increase to reflect your reaching the age of 21 on [date of birthday].

The National Minimum Wage rate that applies to workers aged 18 to 20 is £[amount] per hour. The National Living Wage rate that applies

PREVIEW ENDS HERE

This is the end of the preview

You've seen just 30% of how the National living or minimum wage increase due to age change letter template is structured. Get the complete editable template instantly and customise it for your organisation.

£14.99

Need the complete Pay and benefits process?

Explore the Pay and benefits templates toolkit

What is a national living or minimum wage increase due to age change letter?

National living or minimum wage increase due to age change letter template preview

This letter is used when an employee becomes entitled to a higher statutory minimum wage because they have reached a new age band. The most common changes are when a worker reaches 18 and moves from the under-18 rate to the 18 to 20 rate, or reaches 21 and becomes entitled to the National Living Wage.

The letter provides the employee with a clear written explanation of why their rate is changing, what their new rate will be and when the increase will take effect.

What is it used for?

The template can be used alongside payroll and HR records to communicate an age-related statutory pay increase before it takes effect. It gives the employee a straightforward record of the change rather than relying solely on the amount appearing on their payslip.

The HRDocBox template includes specific wording for employees reaching both 18 and 21, allowing the employer to select the appropriate option for the employee concerned. :contentReference[oaicite:1]{index=1}

Who should use it?

The letter is suitable for employers, HR teams and managers responsible for communicating statutory pay changes. It is particularly useful where an organisation employs younger workers and needs a consistent process for monitoring age-related minimum wage changes.

When should it be issued?

The template is intended to be provided before the employee reaches the relevant age. HRDocBox recommends actioning or delivering the letter ideally no later than two weeks before the employee's birthday, giving the employee advance notice of the change. :contentReference[oaicite:2]{index=2}

Example

A business employs a 20-year-old employee who is paid £10.85 per hour. The employee is due to turn 21 on 15 June 2026.

HR checks the applicable statutory rate and confirms that, from the relevant pay reference period, the employee will move onto the National Living Wage rate of £12.71 per hour. The current 2026 rates are £12.71 for workers aged 21 and over and £10.85 for workers aged 18 to 20. :contentReference[oaicite:3]{index=3}

HR completes the letter, explains that the increase is due to the employee reaching age 21, confirms the new hourly rate and states the effective date. The letter is provided to the employee in advance and a copy is retained with the employee's HR records.

Payroll is then updated so that the correct rate is applied from the appropriate pay reference period. The process provides both the employee and employer with a clear record of why the rate changed and when it took effect.

The wider HR process

Related HR resources and workflow

Explore the HR resources that may be relevant before and / or after using the National living or minimum wage increase due to age change letter, helping you understand the wider process, maintain appropriate documentation and follow a consistent approach.

Previous
Forms
Young person risk assessment form

Use this model young persons risk assessment to help identify any risks associated with a young person in the workplace, and implement safe working measures.

This
National living or minimum wage increase due to age change letter
Next
Forms
Performance appraisal form

A regular performance appraisal or performance development review is important to keep track on the employee in terms of their performance against objectives or other standards, and to maintain their development.

Premium content

To continue reading, purchase this item or a parent toolkit, library or our full library.

Implementation guidance

Use these best practice actions, recommended timescales and process stages to understand when and how the National living or minimum wage increase due to age change letter should be used, helping ensure each step is handled consistently and appropriately documented.

Step Description Responsibility Timing (Days from Issue)
1 Identify Upcoming Age Changes: Review employee dates of birth and identify workers approaching an age threshold that changes their statutory minimum wage entitlement. HR / Payroll Day -30 to Day -21
2 Confirm the Applicable Rate: Check the employee's age, worker status and any relevant apprentice status, then confirm the statutory rate that will apply. HR / Payroll Day -21 to Day -14
3 Prepare the Letter: Complete the template with the employee's details, current rate, new rate and effective date, checking that the figures agree with payroll. HR / Payroll Day -14 to Day -7
4 Issue the Notification: Provide the completed letter to the employee and retain an appropriate copy on the employee's HR record. HR / Manager Day -7 to Day 0
5 Update Payroll: Ensure the new rate is applied from the correct pay reference period and check the employee's subsequent pay to confirm the change has been implemented correctly. Payroll / HR Effective Date onwards
Premium content

To continue reading, purchase this item or a parent toolkit, library or our full library.

Common mistakes

Understand the common mistakes to avoid when using this HR template, helping you reduce risk, prevent unnecessary costs and ensure the process is handled correctly.

  • Applying the new age-related rate on the wrong date or pay reference period.
  • Using an outdated National Minimum Wage or National Living Wage rate.
  • Failing to identify employees approaching an age threshold.
  • Overlooking apprentice status when determining the applicable rate.
  • Updating payroll without checking that the employee's actual pay and hours remain compliant.
  • Sending a letter containing a rate or effective date that does not match the payroll record.
Premium content

To continue reading, purchase this item or a parent toolkit, library or our full library.

HR considerations

UK employment law and best practice

This template is designed to support the process, but the document should be used alongside the relevant HR procedure and applied to the circumstances of the individual case.

Employers are legally responsible for paying eligible workers at least the statutory minimum wage that applies to them. The applicable rate depends on factors including the worker's age and, in some cases, apprentice status. The rates are reviewed annually and change on 1 April. :contentReference[oaicite:4]{index=4}

Age-related minimum wage rates

Workers move between statutory minimum wage age bands when they reach the relevant age. GOV.UK confirms that workers generally move to a new minimum wage rate when they reach 18 or 21. From 1 April 2026, the National Living Wage applies to workers aged 21 and over, while the National Minimum Wage rate for workers aged 18 to 20 is £10.85 per hour. :contentReference[oaicite:5]{index=5}

The employer is responsible for holding accurate information about workers' ages so that the appropriate rate can be applied. :contentReference[oaicite:6]{index=6}

When must the new rate be paid?

GOV.UK guidance states that when a worker reaches 18 or 21, they move onto the applicable new minimum wage rate from the first pay reference period that begins on or after the relevant date. Employers should therefore check their payroll dates rather than simply assuming that the increase must appear on the payslip containing the employee's birthday. :contentReference[oaicite:7]{index=7}

Apprentices and other exceptions

Age alone does not determine the applicable rate in every case. Apprentices can be subject to the apprentice rate depending on their age and whether they are in the first year of their apprenticeship. HR and payroll should therefore confirm the worker's status before applying an age-related rate. :contentReference[oaicite:8]{index=8}

Accurate payroll records

Minimum wage compliance depends on more than the headline hourly rate. Employers need to ensure that all relevant working time and payments are treated correctly when calculating minimum wage compliance. GOV.UK specifically warns that deductions or failing to pay for all time worked can result in workers being underpaid even where the stated hourly rate appears to be at or above the statutory minimum. :contentReference[oaicite:9]{index=9}

Written communication

Although the statutory entitlement arises from minimum wage legislation rather than from the employee receiving this particular letter, providing written confirmation is good HR practice. It creates a clear record of the new rate and effective date and helps employees understand why their pay has changed.

You may also need these resources

FAQs

When does an employee move to the next minimum wage age rate?

Workers generally move to a new statutory minimum wage rate when they reach age 18 or 21. The new rate applies from the first pay reference period that begins on or after the relevant date. :contentReference[oaicite:10]{index=10}

What is the National Living Wage for someone aged 21 or over?

From 1 April 2026, the National Living Wage rate is £12.71 per hour. The 18 to 20 rate is £10.85 and the under-18 rate is £8.00. :contentReference[oaicite:11]{index=11}

Do I have to send an employee a letter when their age changes their minimum wage?

The statutory requirement is to pay the correct minimum wage rather than to issue this particular letter. However, written notification is good HR practice because it clearly explains the change and gives the employee a record of their new rate.

Why use HRDocBox for this letter?

HRDocBox combines deep HR knowledge, practical application and years of experience with UK employment requirements. This template gives you a focused document for a specific payroll and employee communication situation, rather than requiring you to build the wording from scratch.

Why use HRDocBox rather than asking AI to create the letter?

AI can generate a basic pay-change letter, but the important part is getting the age threshold, applicable rate, effective date and payroll treatment right. HRDocBox provides a purpose-built template supported by UK employment-law knowledge and practical HR experience.

Can I customise the letter?

Yes. You can insert your own employee details, applicable rates, effective date and contact information. The underlying HRDocBox template includes separate wording options for employees reaching 18 and 21. :contentReference[oaicite:12]{index=12}

How this content is developed and reviewed

The National living or minimum wage increase due to age change letter template is developed using a practical HR methodology that considers current UK employment legislation, ACAS guidance, CIPD good practice and the real-world HR process it supports. Templates are regularly reviewed and updated, with additional reviews triggered by significant changes to legislation, guidance or established HR practice, helping ensure each document remains practical, relevant and suitable for UK employers.

About the author

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.

HRDocBox has been creating practical UK HR documents since 2009.

Executive recommendation

"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."

RB
Ruth Brock Chief Executive Officer The Hygiene Bank
The National living or minimum wage increase due to age change letter template is also included in these bundles:

Pay and benefits toolkit Pay and benefits toolkit 35 templates
£34.90

Management library Management library 468 templates
£79.99

Full library Full library 776 templates
£99.99

Get started today

HR confidence starts here

Whether you employ 5 people or 50, hrdocbox gives you the structure, documents and expertise needed to manage employees professionally and legally.

Download your FREE UK employment contract template

Professionally written and fully compliant with UK employment law

Download FREE contract
Free UK employment contract template