The minimum wage is set to rise by 11p to £6.19 an hour from October, while the rate for under-21s will be frozen.
The increase in the adult rate represents a 1.8 per cent rise. The cost of living increased by 3.6 per cent in the year to January, according to the Consumer Prices Index.
The Low Pay Commission made the recommendation which has been accepted by the government.
The rate for those age 18–20 will remain at £4.98 an hour.