News Article

The new National Living Wage and National Minimum Wage: everything you need to know.

Posted on 10th April 2017

On the 1st of April 2017, the government introduced further increases to the National Living Wage and the National Minimum Wage. Here's everything you need to know.

The new National Living Wage and National Minimum Wage:

everything you need to know.



 

On the 1st of April 2017, the government introduced further increases to the National Living Wage and the National Minimum Wage. The changes are in line with Chancellor Philip Hammond's Spring Budget, and are set to have a positive impact on millions of workers across the UK. Here's everything you need to know about how your salary may be affected:

National Living Wage

 

The National Living Wage, which covers employees aged 25 and above, has increased to £7.50. Rising by 30p an hour from £7.20, many full time employees could benefit from around £600 extra each year.

 

The National Living Wage was launched by former chancellor George Osborne in 2016, and is part of the government's promise to give a long term boost to workers in the UK, having set a target of achieving an hourly rate of £9 by 2020.

 

National Minimum Wage

 

The National Minimum Wage has been in operation since 1999, and applies to employees aged 16 to 24 and apprentices. The minimum wage will be rising by 5p to 10p an hour, depending on your age, meaning if you’re 21-24 years old you will receive a 1.4% pay rise, and if you’re 18-20 years old you will receive a rise of less than 1% - but it’s important to note that the minimum wage did receive an increase in October 2016, with employees who work over 35 hours a week earning £450 more every year.

 

The new National Minimum Wage pay rates are:

·         £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

 

I don’t think I’ve received a pay increase – what should I do?

 

To find out the correct wage you should be receiving, visit the ‘National Minimum Wage and Living Wage calculator for workers’ here: https://www.gov.uk/am-i-getting-minimum-wage

 

If you haven’t received the correct pay increase, your employer owes you the difference between what you should have been paid and what they’ve actually been paying you. Bring the issue up with your employer / HR team and ask them to explain how they’ve worked out your pay.

 

If you're still unsure, or if you think you might be underpaid, call the Acas support line on 0300 123 1100.

 

Do you have an opinion on the wage increases? What do you think about the difference in wages between 16 and 25 year olds – are they fair? Get in touch via our social media channels:

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Published by:                    JVP Jobs

Publish date:                     4th April 2017

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