It is to rise by what the government has said is the “biggest cash increase ever”, rising by 51p in April 2020.
The national living wage is currently set at £8.21 per hour for people aged 25 and over, but will be raised to £8.72 in April.
The rise is more than four times the rate of inflation and nearly three million workers are set to benefit from the cash boost, according to the government.
Chancellor Sajid Javid said the wages of the lowest paid full-time workers have increased by £3,600 since the national living wage was first introduced in 2010, and will grant workers an increase of £930 over the year when the new rates come in on 1 April.
The new minimum pay rates keep the Chancellor on course to meet the pledge he made in October to increase it to £10.50 by 2024.
What are the new rates?
From April 2020, the new national living wage rates will be:
National living wage for people aged 25 and over - £8.72 National minimum wage for people aged 21 to 24 - £8.20 Rate for people aged 18 to 20 - £6.45 Rate for people aged under 18 - £4.55 Rate for apprentices - £4.15
Prime Minister Boris Johnson said the boost to minimum wages helps to correct the injustice for people who “haven’t seen the pay rises they deserve”.
He said in a statement: “As we enter a new decade, we’re setting our sights higher, to help people earn more over the next five years and level up access to opportunity across our great country.”