Every year the National Living Wage and the National Minimum Wage changes in April. This year the boost could see some workers almost £1000 better off.
Following their landslide election win, the Conservatives had pledged to significantly increase the wage if economically possible.
This year the minimum rate for over 25’s, known as the National Living Wage, will increase by 51p per hour.
Prime Minister Boris Johnson said: “Hard work should always pay, but for too long, people haven’t seen the pay rises they deserve.”
He added: “Our government will put a stop to that, giving nearly three million people from Edinburgh to Eastbourne a well-earned pay rise, including the biggest ever cash boost to the National Living Wage.”
- Real Living Wage 2020: What is the real Living Wage in the UK?
What is the current National Minimum Wage?
As of April 2019, the National Minimum Wage per hour is as follows:
- Apprentice – £3.90
- Under 18 – £4.35
- 18-20 – £6.15
- 21-24 – £7.70
- 25 and over – £8.21
Apprentices are entitled to the minimum wage for their age if they are both aged 19 or over, and have completed the first year of their apprenticeship.
Will the Minimum Wage increase in 2020?
From April 2020, the National Minimum Wage per hour is as follows:
- Apprentice – £4.15
- Under 18 – £4.55
- 18-20 – £6.45
- 21-24 £8.20
- 25 and over – £8.72
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What is the National Living Wage?
The National Living Wage was first introduced in 2016.
The National Living Wage applies to workers over the age of 25.
The wage is higher than the National Minimum Wage, and also increases yearly.
This year the National Living Wage will increase by 6.2 percent, while the National Minimum Wage for 21-24-year-olds will increase by 6.5 percent.
What is the ‘real’ Living Wage?
The Living Wage Foundation campaigns for companies to pay employees a ‘real Living Wage’ based on the cost of living, rather than the Government minimum.
Although the current Conservative Government is raising the National Living Wage this year, some argue the amount set is not enough to live.
The Living Wage Foundation sets the current ‘real Living Wage’ as £9.30 across the UK.
However, in London the organisation believes the wage should be higher at £10.75 per hour.
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