A 20p increase in the hourly national minimum wage has comes into effect on Thursday bringing the new adult rate up to £6.70 an hour.
The new rate comes into force ahead of the planned national living wage of £7.20 and hour for over-25s from next April.
The statutory figure for 18-20 year olds has risen by 17p to £5.30 an hour and pay for under 18s has increased by 8p to £3.87 with apprenticeship rates rising to £3.30.
The government says the 3% rise in the adult rate is the biggest real increase since 2006 and moves the minimum wage closer to the average wage than ever before.
But TUC general secretary Frances O'Grady said the increase is "welcome but hardly cause for euphoria."
Meanwhile, a report by the Resolution Foundation found the proportion of workers earning the legal minimum is set to more than double over the next five years as a result of the national living wage.
The think-tank said women and older workers are particularly likely to be affected.
Business Secretary Sajid Javid said: "As a one-nation Government we are making sure that every part of Britain benefits from our growing economy and today more than 1.4 million of Britain's lowest-paid workers will be getting a well-deserved pay rise."