The rise will mean that the country’s lowest paid workers will receive an extra £ 1,000 a year. Rishi Sunak announced the change to the 2021 Budget, with the rise approaching around the time the energy price ceiling rises and households receive a city tax deduction to mitigate rising costs. But what do we mean by the minimum wage and how does it differ from the National Living Wage? Here’s everything you need to know.
What is the minimum wage and the national living wage?
While people often refer to the “minimum wage”, the national minimum wage actually only applies to people over the age of dropping out of school but under 23 years old. Anyone aged 23 and over now receives the National Living Wage according to a system released earlier this year. The National Living Wage was introduced in April 2016, but for the first five years it only applies to people aged 25 and over, with a separate minimum wage for people aged 21 to 22. See how the current minimum wage system works in the UK:
National living wage (people aged 23 and over): 8.91 ώρα per hour Minimum salary for young people 21 to 22 years old: 36 8.36 per hour Minimum salary for young people 18 to 20 years old: ,5 6.56 per hour Minimum wage for under 18s: 62 4.62 per hour Minimum student’s salary: 30 4.30 per hour
The minimum wage for apprentices is based on people under the age of 19 or on people over the age of 19 but in the first year of their apprenticeship. If the apprentices are over 19 years old and have finished the first year of their apprenticeship, they are entitled to the minimum salary of their age group.
More on the Spring Statement
How much is the minimum wage rising in the UK?
It has been confirmed in the 2021 Budget that the National Living Wage will increase to, 9.50 from 1 April 2022 – which equates to an additional £ 1,000 per year for a full-time employee. The increase in salaries also leads the national minimum wage to 9.18., While the apprenticeship rate increases to 4.81 £ per hour. Mr Sunak said at the time: “This is a government that is on the side of the workers. “This wage increase ensures that we get the job done and keeps us on track to achieve our goal of ending low wages by the end of this Parliament.” These recommendations came from the Low Remuneration Committee – an independent advisory board – before being accepted by the government and confirmed on October 25, 2021.
What is the real living wage?
In addition to the National Living Wage, there is also an informal and voluntary “real living wage”. This is calculated by the Living Wage Foundation, a campaign organization, and is based directly on the cost of living. According to the foundation, the “real” living wage is currently 90 9.90 an hour for workers across the UK and ,0 11.05 in London, almost a pound above the mandatory National Living Wage. About 9,000 employers are currently enrolled in the program, including Google, Nationwide, Aviva and the Chelsea and Everton football clubs.
