Changes to the National Minimum Wage and the National Living wage will come in next month, providing some small respite for workers on lower wages.
The cost of living is soaring in the UK, with energy bills, National Insurance, food and housing all costing more. What is the National Minimum Wage? What is the Living Wage? What are the new rates? Read on to find out if you will be affected.
Read more: All the ways you can help people struggling to afford food in Wales as the cost of living goes up.
What is the National Minimum Wage?
This is a minimum amount that an employer can pay workers. It does not matter whether workers are permanent, temporary, full-time, or part-time. All employers must pay this, no matter their size.
The minimum wage changes depending on the employee's age, and whether they are an apprentice. It applies to employees of at least school leaver age, which is 16.
The current hourly rates of the National Minimum Wage are:
- Apprentice: £4.30
- Under 18: £4.62
- 18 to 20: £6.56
- 21 to 22: £8.36
- 23 and over: entitled to the Living Wage
The hourly rates change on April 1 every year. From April 2022, the rates will be:
- Apprentice: £4.81
- Under 18: £4.81
- 18 to 20: £6.83
- 21 to 22: £8.91
- 23 and over: entitled to the Living Wage
Read more: How much poorer are you going to be on April 1
What is the National Living Wage and when does it change?
The National Living Wage is slightly higher than the minimum wage. Workers are entitled to this once they turn 23.
It was first introduced in 2016 for workers 25 and over. It has been increased every year since, and is set to represent 66% of median UK earnings by 2024.
- The current hourly rate of the living wage: £8.91.
- The new hourly rate from April 1: £9.50.
This increase means a full-time worker on the National Living Wage will get a pay rise of more than £1,000 per year.
The National Living Wage must be paid by law. The Living Wage Foundation calculate a "real living wage" each year which employers can voluntarily sign up for. This is the wage that the charity say workers need to live comfortably. It currently stands at £9.90, or £11.05 in London. 9,000 employers in the UK are signed up to this wage.
What to do if you think you aren't getting paid the minimum wage
Workers who think their pay is below the national minimum should talk to their employer first. They can ask the employer in writing to see their payment records. If the employer owes the worker any arrears, they must pay these back.
If they are unable to resolve the issue with the employer, workers can contact Acas, who provide free and confidential support and advice on employment rights. Any complaint about the National Minimum Wage will be directed to HMRC.
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