As of the 1st April the national living wage will rise 4% from £7.20 to £7.50 an hour. The national minimum wage has notably increased from 2010 when it was only £5.93 for ages 25 and over. The government announced that its target is to increase to £9 an hour by 2020.
The announcement has been subject to discussion. Many argue that the increase is not enough, others argue that setting higher minimum wages would lead to fewer job opportunities.
We've summarised new thresholds for 2017/18 below, although please note some of these remain unchanged from the current year. For our Scottish clients please do note:
Workers must be at least school leaving age to get the National Minimum Wage and must be 25 or over to get the National Living Wage. If an employee believes their pay is below the correct minimum wage rate they should speak with their employer first to try resolve the issue. The ACAS (Advisory, Conciliation and Arbitration Service) Helpline can also offer support to help solve a payment dispute if further action is necessary.
The increase in minimum wage rates will also increase other costs such as pension contributions and national insurance contributions so organisations need to factor these into budgets for the coming year.