The National Living Wage and The National Minimum Wage
Slightly confusing having two different names, but the National Living Wage is simply the National Minimum wage for anyone over 25 years of age.
In the past the National Minimum Wage has increased every October, in fact in October 2016, just 6 months ago the rates all increased, the rate for 21 to 24 year olds moving from £6.70 to 6.95 and now just six months later they are being increased again. The reason put forward by the Chancellor is that he wanted the National Living Wage and the National Minimum Wage to increase at the same time each year and as the National Living Wage was introduced in April that is when the changes are going to happen. So for some folk two increases in one year.
For those over 25 the new National Living Wage from 06 April will be £7.50 (up from £7.20)
21-24 year olds will be entitle to £7.05 per hour (up from £6.95) 18-20 year olds will get £5.60 (up from £5.55) and under 18s (who must be above school leaving age) will get £4.05 (up from £4.00). The apprentice rate will increase from £3.40 to £3.50. – this apprentice rate is for apprentices who are under 19 years old or for over 19 year olds in their first year of an apprenticeship.
So a 25 year old on the National Living Wage can look forward to an extra £12 a week (40 hour week) or £624 a year.
If you are unsure about the National Living Wage or the National Minimum Wage, please give our employment law experts a call on 0845 070 0505 or at the Nottingham Head Office on 0115 988 6211
For other information on National Living and Minimum wage click here to go to the Government website.