The national minimum wage has risen from £5.80 an hour to £5.93 an hour, with corresponding increases for younger workers – 16- and 17-year-olds will see a rise from £3.57 an hour to £3.64.
For 18- to 20-year-olds the rate is increasing from £4.83 to £4.92 an hour.
The government is also planning to crack down on employers who flout the minimum wage laws. It said it would name and shame offenders and publicise breaches from 1 January.
Employment minister Edward Davey said firms have three months to put their house in order.
"Bad publicity can be a powerful weapon in the fight against employers who try to cheat their workers and competitors. Their reputation can be badly damage if they are seen to be flouting the law," he said.
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