The Chancellor of the Exchequer Rishi Sunak has announced in his Spring Budget that the National Living Wage in the UK will increase by 2.2 percent to £8.91 per hour.
That means that millions of people could see their wages rise as of 1 April.
Sunak confirmed that for the first time ever, those aged 23 and over - previously under the lower wage bracket - will be included in the government's highest rate.
That means that those on £8.20 per hour will see an increase of 71p per hour as of the start of next month.
Over the course of the year, the new rate will see the National Living Wage increased by £345 for those working full-time on the lowest wage.
The increase is expected to affect around two million people on the lowest wages in the UK.
People who are between 21 and 22 years old will see a two percent increase in the minimum wage from £8.20 to £8.36, and 18 to 20-year-olds will see an increase from £6.45 to £6.56.
Those working who are under 18 will see their wage increased from £4.55 to £4.62 per hour, and apprentices will have their hourly rate increased to £4.30 from £4.15.
Sunak said: "Over the course of this year, as the economy begins to recover, we are shifting our resources and focus towards getting people into decent, well-paid jobs.
"We reaffirm our commitment to end low pay, increasing the National Living Wage to £8.91 from April - an annual pay rise of almost £350 for someone working full time on the National Living Wage."
Of course, the National Living Wage is not the same as the real living wage, which is a voluntary commitment made by companies who choose to pay their workers more.
That amount is currently £9.50 for workers outside London, and £10.85 for those living within the English capital.
Sunak also announced that the maximum amount for contactless payments is to rise from £45 to £100 in an attempt to bolster the ailing retail industry.
He said: "As we begin to open the UK economy and people return to the high street, the contactless limit increase will make it easier than ever before for people to pay for their shopping, providing a welcome boost to retail that will protect jobs and drive growth."
This action has been allowed because of Britian's exit from the European Union, which has a limit of around £45.
However, some have expressed concerns about the increased potential for fraud due to the larger sums involved.