Minimum wage workers will receive a 51p an hour boost from April, the Government announced last night.
The National Living Wage, which is the legal pay floor for employees aged 25 and over, will rise from £8.21 to £8.72.
The rate for 21 to 24 years olds will climb from £7.70 to £8.20.
In contrast, the Real Living Wage, set by independent experts and championed by the Living Wage Foundation, is £9.30 an hour rising to £10.75 in London, where costs are higher.
It is earned by all workers regardless of their age.
Some 2.8 million employees are due to benefit from the hikes revealed by the Government.
The Treasury said it equates to an annual pay rise of £930 for a full-time worker aged 25 and over.
Prime Minister Boris Johnson , who is on holiday on the private Caribbean island of Mustique, said: “Hard work should always pay, but for too long, people haven’t seen the pay rises they deserve.”
He added:“Our government will put a stop to that, giving nearly three million people from Edinburgh to Eastbourne a well-earned pay rise, including the biggest ever cash boost to the National Living Wage.”