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The minimum wage for adult workers has been raised by 21p per hour, with the government warning there will be stricter penalties on firms who fail to comply.
Announced in March by Gordon Brown, the increase sees the national minimum wage rise from £5.52 to £5.73 an hour.
There were also increases to the level of pay for 18 to 22-year-olds, with the minimum they can earn per hour rising from £4.60 to £4.77 and the statutory hourly rate for 16 to 17-year-olds up from £3.40 to £3.53.
And for businesses that fail to pay the minimum wage, an automatic £5,000 fine will be levied.
Employment relations minister Pat McFadden said: "The minimum wage has made a lasting and significant difference to the low paid, with around a million workers benefiting from the increase each year.
"It is vital that we safeguard this right with effective enforcement, which is why we're bringing in tough new penalties for those who flout the law."
The government's clampdown on rogue employers was welcomed by general secretary of public sector union Unison Dave Prentis who called on a "vigilant" approach to enforcing the legislation.
Prentis said: "The rise to £5.73 is a welcome cushion, however, with the price of everyday essentials such as food, gas and electricity going up massively, it won't lift enough working people out of the poverty trap.
"A more realistic figure would be £6.75 an hour - a fair day's pay for a fair day's work, regardless of age."
Dods Parliamentary Communications Ltd