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Wednesday, May 6, 2026

Almost 1 in 3 HMRC staff now on National Minimum Wage - PCS

From April 2023, tens of thousands of HMRC staff are now on the national minimum wage. The necessary uplifts at AA/AO national grades mean that London/national, as well as grade pay differentials are being eroded.

All employers are required by law to pay their workers at least the rate of the National Minimum Wage, which from the 1April 2023 has increased from 9.50 per hour to 10.42 per hour, for workers over the age of 22. Following the latest increase, the department has confirmed that the HMRC AA/AO national spot rate has risen from 22,524 to 22,845 per year. This means that around 1 in 3 HMRC staff who are in either the AA national or AO national grades, will now have received an increase of 1.4% just to keep in line with the statutory minimum pay rates allowed under UK law.

How did we get here?

Following the introduction of the government’s so-called “National Living Wage”, and in the run-up to our Pay and Contract Reform (PaCR) deal, the annual increases in the national minimum wage were only between around 30p-50p an hour, and even then, we were already seeing small increases for AA Nationals required, halfway through each pay year.

It was for that reason that, under PaCR, PCS took deliberate steps to focus as much money as possible towards the lowest-paid. This resulted in AA National members receiving an increase of just under 18% over the three-year life of the deal; and AO National members on the minimum, receiving over 15% during the same period. These numbers...



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