Welsh farmers face 7% wage hike under new agricultural pay proposals

Welsh farmers could face a 7.2% increase in minimum hourly pay for some agricultural workers from April 2027, under proposals that could add further pressure to farm employment costs.

The independent Agricultural Advisory Panel for Wales has proposed raising the minimum rate for Grade B agricultural workers aged 21 and over from £12.71 to £13.62 an hour.

The 91p increase forms part of a wider review of agricultural wages and working conditions, with the Welsh Government seeking views on changes to pay, allowances and employment rights.

For a farm employing a Grade B worker on the current minimum rate for 40 hours a week, the proposed increase would add approximately £1,893 to annual basic wage costs, before employer National Insurance and pension contributions.

The illustrative calculation assumes 52 paid weeks and unchanged working hours, with actual costs varying according to staffing arrangements and employment conditions.

Other agricultural workers would also see increases, although the proposed rises differ between grades.

For Grade A agricultural development workers aged 21 and over, the minimum hourly rate would increase from £12.71 to £13.21, equivalent to approximately 3.9%.

Advanced agricultural workers would see their minimum rate rise from £13.48 to £14.03 an hour, while senior agricultural workers would receive at least £15.39, up from £14.79.

The proposed minimum rate for agricultural managers would increase from £16.23 to £16.89 an hour.

Younger workers would also benefit, with minimum hourly rates for those aged 16 and 17 rising from £8 to £8.31, while workers aged 18 to 20 would see their rate increase from £10.85 to £11.27.

Alongside higher wages, the panel is proposing changes to agricultural sick pay that could have further implications for farm employers.

Under existing rules, eligible agricultural workers do not receive Agricultural Sick Pay for the first three days of an absence lasting fewer than 14 days.

The panel wants to remove this waiting period, allowing qualifying workers to receive agricultural sick pay from the first day of illness, regardless of the length of their absence.

The change would align the agricultural scheme with reforms to Statutory Sick Pay under the Employment Rights Act 2025.

Workers would still need to complete 52 weeks of continuous employment to qualify for Agricultural Sick Pay.

Changes to bereavement leave and pay are also being considered to bring agricultural employment rules into line with wider legislation, including new rights relating to pregnancy loss.

The proposals come as Welsh farming businesses face continued uncertainty over input costs, labour availability and future agricultural support.

Higher minimum wages could increase employment costs for businesses already operating under financial pressure, particularly those relying heavily on paid labour.

However, the increases would also improve minimum earnings for agricultural workers facing rising household expenses, particularly in rural areas where housing, transport and heating can be costly.

The consultation document highlights wider challenges affecting Welsh agriculture, including trade uncertainty, immigration rules and geopolitical pressures on farming supplies.

Referring to the impact of changes following Brexit, the document states: "These changes can make it harder to source seasonal and skilled workers."

The panel also acknowledges that uncertainty over future financial support and payment rates can make it difficult for agricultural businesses to plan ahead.

Its recommendations follow a review of economic conditions in Welsh agriculture, with farming unions and worker representatives providing evidence to the process.

The Agricultural Advisory Panel includes representatives from NFU Cymru, the Farmers' Union of Wales (FUW), Unite the Union and three independent members.

The proposed wage rates were agreed through a majority vote before being put forward for consultation.

Farm employers, workers and industry organisations are being invited to comment on how the proposed changes could affect agricultural businesses, employment conditions and the wider sector.

The panel will consider consultation responses before submitting its recommendations to Welsh ministers.

Subject to approval, the new minimum wage rates would take effect from 1 April 2027, alongside proposed changes to sick pay and other employment conditions.