Agricultural Minimum Wage 2025 to 2026: executive summary
The Agricultural Wages (Wales) Order 2025, which replaces the 2024 Order, includes several updates.
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The Agricultural Advisory Panel for Wales advises Welsh Ministers on the Agricultural Minimum Wage arrangements and other terms and conditions of employment for agricultural, horticultural and forestry workers in Wales. It also promotes careers in the sector and the development of an appropriately skilled workforce.
The Panel is made up of the following members:
- Chair
- independent (agriculture specialist) member
- independent (education specialist) member
- 2 representatives from UNITE the Union
- 1 representative from National Farming Union (NFU Cymru)
- 1 representative from Farmers Union of Wales (FUW)
The Panel is responsible for drafting the Agricultural Wages (Wales) Order (the Order), which stipulates fair minimum rates of pay, allowances and employment terms for agricultural workers. Annually, the Panel uses its industry knowledge and expertise to review the Order, taking into account current economic conditions and legal requirements. They then consult on any recommended changes before submitting to Welsh Ministers for approval.
Once passed by the Senedd, the Order has legal authority in Wales.
The Agricultural Wages (Wales) Order 2025, which replaces the 2024 Order, includes several updates. This summary highlights the key changes and their implications for agricultural workers and employers in Wales.
Increased pay rates
Minimum pay rates for all grades are increased. The new wage rates will be introduced on 1 April 2025 and are as follows:
| Category of worker | 2024 rates (per hour) | 2025 rates (per hour) |
|---|---|---|
| A1 – Agricultural Development Worker (16-17 years) | £6.56 | £7.55 |
| A2 – Agricultural Development Worker (18-20 years) | £8.82 | £10.00 |
| A3 – Agricultural Development Worker (21 years+) | £11.73 | £12.21 |
| B1 – Agricultural Worker (16-17 years) | £6.56 | £7.55 |
| B2 – Agricultural Worker (18-20 years) | £8.82 | £10.00 |
| B3 – Agricultural Worker (21 years+) | £11.79 | £12.59 |
| C – Agricultural Advanced Worker | £12.27 | £13.48 |
| D – Senior Agricultural Worker | £13.46 | £14.79 |
| E – Agricultural Manager | £14.77 | £16.23 |
Minimum rate of pay for apprentices
| Category of worker | 2024 rates (per hour) | 2025 rates (per hour) |
|---|---|---|
| Apprentice Year 1 | £6.40 | £7.55 |
| Apprentice Year 2 and beyond (16 - 17 years) | £6.40 | £7.55 |
| Apprentice Year 2 and beyond (18 – 20 years) | £8.60 | £10.00 |
| Apprentice Year 2 and beyond (21+ years) | £11.44 | £12.21 |
The apprenticeship age bands are aligned with the National Minimum Wage / National Living Wage.
Allowance adjustments
All allowances are increased by 10%.
- dog allowance: £11.18 per week per dog, if the worker needs to keep a dog for their job
- on-call allowance: three times the worker's hourly rate for each period they are on-call. If called to work, they are paid for the hours worked, including overtime if applicable
- night work supplement: £2.12 per hour for work between 7 pm and 6 am, excluding the first two hours
- birth and adoption grants: £87.85 for each child upon birth or adoption
Accommodation offset allowance
Accommodation provided by an employer can be factored into the calculation of the Agricultural Minimum Wage. The rates for 2025 are as follows:
- house: £1.97 per week
- other accommodation: £6.31 per day (provided the worker has worked at least 15 hours that week)
Overtime rules simplified
The term "basic hours" now means up to a maximum of 39 hours per week or any other hours agreed in the worker's contract or apprenticeship. This aims to clarify that agricultural workers will only get paid for overtime after they have worked all their regular hours. It removes the idea that overtime is paid after an 8-hour workday. It also states that part-time workers should get overtime pay for any hours they work beyond their usual hours.
This amendment will enable greater flexibility to extend a working day beyond 8 hours where the needs of the farm business require it (without incurring overtime), and remove the anomaly where overtime is payable before basic hours of work in a week have been completed.
Pay protection provision removed
This provision was introduced to protect agricultural workers pay when the grading system changed in April 2022. It ensured workers did not suffer a reduction in pay because of their assimilation to a new grade. The provision froze pay at the point of assimilation to the new grade, if the hourly rate applicable to the new grade was lower. This protection will no longer be required under the new 2025 minimum payment rates, which will exceed 2022 rates for comparable grades.
Training costs
The rules regarding training costs have been updated to allow employers to recoup these costs if an employee leaves their employment during or within 12 months of completing the training.
The scope of recovery is limited to costs funded by the employer and excludes funding provided by a third party. It also excludes situations where the employer has terminated the employment, unless the termination is due to gross misconduct.
This is a common rule in many sectors and aims to ensure fairness between employers and agricultural workers.
Holiday entitlement and pay
It is now easier to calculate holiday entitlement and pay for these workers and is based on updates to the Working Time Regulations 1998. Instead of using a 52-week period to calculate holiday pay, a percentage calculation based on the workers weekly holiday entitlement can be used for agricultural workers who meet the definition of part-year or irregular hours workers under the Working Time Regulations 1998.
Unpaid leave
The provision regarding unpaid leave has been amended to recognise employers’ statutory obligations in relation to Carer’s Leave, Parental Leave and other types of statutory leave under the Carer’s Leave Regulations 2024, Maternity and Parental Leave etc Regulations 1999 and the Employment Rights Act 1996. This update will ensure agricultural workers are not prevented from taking unpaid leave when they have a statutory entitlement, for instance, under the Carer’s Leave Regulations, employers cannot refuse a request for carer’s leave from an eligible agricultural worker. The leave can only be delayed provided an alternative date within one month of the requested leave date is agreed upon.
It is a criminal offence to not pay agricultural workers at least the Agricultural Minimum Wage.