The government has announced that national minimum wage will increase by 20p an hour to £6.70 from October.
The changes will benefit more than 1.4 million workers.
The hourly rate for younger workers will also rise and apprentices salary will go up by 20% - or 57p to £3.30 an hour.
The rates were recommended by the Low Pay Commission, but the government has gone further than the 7p an hour increase suggested for apprentices.
Prime Minister David Cameron said the increases would offer "more financial security" to workers and Labour said the minimum wage had been "eroded" since 2010 while unions said the increases would not address "in-work poverty".
The 3% increase in the national minimum wage for adult workers is the biggest real-terms rise in seven years.
