The minimum wage in Britain will rise from £7.50 to £7.83, the chancellor has announced.
While delivering the 2017 Budget, Philip Hammond said the minimum wage will rise by 4.4%.
The boost for workers aged over 25 will come into force in April 2018, the chancellor said.
This equates to a pay rise of £600 a year.
Pay for under-25s will also be increased in line with recommendations from watchdogs.
There are about two million minimum wage workers in Britain, according to recent figures.
The chancellor said: ‘Making work pay is core to the philosophy of this government. That is why we introduced the National Living Wage in 2016.
‘From April, it will rise by 4.4% from £7.50 an hour to £7.83, handing full-time workers a further £600 pay increase, taking their total pay rise since its introduction to over £2,000 a year.
‘We also accept the Low Pay Commission’s recommendations on national minimum wage rates, supporting our young people with the largest increase in youth rates in 10 years, delivering a pay rise to over two million minimum wage workers of all ages across the country.’
Mr Hammond detailed the rise as he discussed boosting productivity across the nation during his speech in parliament.