The minimum wage for Brits will rise from £8.91 to £9.50 in April 2022.
Chancellor of the Exchequer Rishi Sunak will announce the boost to the National Living Wage for over-23s in the upcoming budget.
Tories have previously claimed they would raise the minimum wage to £10.50 an hour and expand the eligibility to over-21s by 2024.
This is because ministers pledged future rises would be pegged to two-thirds of median earnings, higher than the previous 60% target.
From 1 April, the hourly rate for people aged 21-22 goes to £9.18 an hour, up from £8.36. The Apprentice Rate will also increase from £4.30 to £4.81 an hour.
Last month, Labour members backed a motion to increase the minimum wage to £15-an-hour across the country.
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But the motion was not supported by Keir Starmer, who said the party has already committed to a minimum wage of "at least" £10-an-hour.
Speaking to ITV News, the Labour leader said: "We were very clear on Saturday a £10 minimum wage which is a 12% increase and means £2,000 in real money for those that would benefit under that.
"That is significant, that is our policy and it is alongside a wider package of measures to protect people at work - including day 1 rights and including statutory sick pay."
