Up to 220,000 Scottish workers are set for a pay rise.
The new National Minimum Wage and National Living Wage rates come into effect on April 1, 2025.
This change is expected to put more money in the pockets of Scotland's lowest-paid workers.
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Eligible full-time workers on the National Living Wage will see a real-terms pay increase of £1,400 per year.
This is part of the Plan for Change, which aims to provide families with better financial stability, improve living standards and kickstart growth.
Business Secretary Jonathan Reynolds said: "We promised to make low pay a thing of the past.
"Now, as part of our Plan to Make Work Pay and the biggest upgrade to workers’ rights in a generation, we are delivering that.
“Low pay is not only bad for workers, it prevents them from spending on our high streets and allowing local businesses to achieve their full potential.
“By ensuring that everyone gets a fair wage for the hours they work, we’re delivering the financial stability needed to kick-start economic growth and ensure our country is fit for the future.”
Employment Rights Minister Justin Madders added: "Hard work deserves to be rewarded and this Government’s Plan to Make Work Pay is making that a reality.
“We’re raising the floor for workers from Hawick to the Highlands, putting more money into their pockets and delivering the increased living standards needed to kickstart economic growth across Scotland.”
The new rates from April 1, 2025, are as follows: the National Living Wage (21+) has increased by 6.7 per cent, from £11.44 to £12.21 per hour; the National Minimum Wage (18-20) has a record increase of 16.2 per cent, from £8.60 to £10 per hour; the National Minimum Wage (under 18) has increased by 18 per cent, to £7.55 per hour; and the Apprentice Rate has the largest increase of 18 per cent, from £6.40 to £7.55 per hour.
The Accommodation Offset is now £10.66 per day.
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Scottish Secretary Ian Murray said: "This well-deserved pay rise for up to 220,000 Scots is a landmark moment in the UK Government's Plan for Change.
"It will boost economic growth and put more money in people’s pockets - we will always ensure that working people benefit.
"We are taking comprehensive action to deliver the biggest improvements to workers’ rights in a generation, where jobs will not only be better paid, but more secure and with employees having stronger rights.
"We will continue to do whatever is necessary to help more people into work - while always supporting those who cannot - as we secure Britain's future and a decade of renewal for households the length and breadth of Scotland."
The Employment Rights Bill, a key pillar in the Plan to Make Work Pay, will release an additional £600 a year to some of the lowest-paid workers.
