Changes to the National Minimum Wage and National Living Wage

As recruitment specialists working with companies large and small throughout the UK, it is important for us to be aware of legal and statutory changes that will have an impact on our clients and their employers.

Here we provide you with the latest information about national minimum wage.

What are the National Minimum Wage and National Living Wage?

The National minimum wage is the minimum wage per hour a worker is entitled to in the United Kingdom. The minimum wage and rates are reviewed every year by the government each year.

The National Living Wage is an obligatory minimum wage payable to workers aged over 25. It was first rolled out in April 2016 by Chancellor George Osborne with the government's aim to raise the wages of those aged 25 and over to £9 an hour by 2020.

What are the changes being made to the National Minimum Wage and National Living wage?

This month the National Minimum wage and National Living wage were increased due to new laws and changes that have been introduced .

The changes mean a 4% pay rise for workers 25 and over - this means if you work full time on minimum wage, doing a 38-hour week, you will be £500 better off over a year.

The new rates of pay are now as follows:

  • £7.50 per hour - 25 yrs old and over
  • £7.05 per hour - 21-24 yrs old
  • £5.60 per hour - 18-20 yrs old
  • £4.05 per hour - 16-17 yrs old
  • £3.50 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
Increase to national minimum wage

What are the benefits of the National Minimum Wage and National Living Wage?

The National Minimum Wage achieves equality and reduces poverty as the low paid gain a better income and the unemployed become interested in getting work due to the wage increases.

The National Living Wage is good for business, families and society. This is because employers believe it enhances the quality of work for their staff and it gives workers the opportunity to provide for themselves and their families.

Living Wage Foundation