While a lot of the news is doom and gloom at the moment with the coronavirus outbreak and the lockdown in full effect, there is some good news for some of the lowest paid workers out there who are set for a pay rise.
From tomorrow (April 1, 2020) there will be an increase in the minimum wage for all basic rate workers. It means that millions of people will see their wallet get a little heavier very soon.
Chancellor Rishi Sunak confirmed the rates earlier this month and it will mostly help the lowest income households and those on apprenticeships, although all other basic rate workers over the age of 16 will be affected too.
Some of the main changes - as reported by The Mirror - are:
- The National Living Wage (NLW) - the rate for over 25s - will go up from £8.21 to £8.72 an hour, marking a 6.2% increase.
- Younger workers on National Minimum Wage will see pay boosted with increases of between 4.6% and 6.5%, dependent on their age
- 21-24 year-olds should see a 6.5% increase from £7.70 to £8.20 an hour.
It means a full-time worker aged 25 or over who receives the National Living Wage will get a pay rise of £930 a year. It could be a handy boost in the pockets for plenty of people just before Easter and at a tough time.
Current minimum wage levels
- Aged 25 or older? You're currently entitled to £8.21 an hour
- Aged 21-24? You're currently entitled to £7.70 an hour
- Aged 18-20? You're currently entitled to £6.15 an hour
- Aged below-18? You're currently entitled to £4.35 an hour
- Apprentice? You're currently entitled to £3.90 an hour
How much your pay will increase to in April 2020
- Aged 25 or older? You'll soon be entitled to £8.72 an hour
- Aged 21-24? You'll soon be entitled to £8.20 an hour
- Aged 18-20? You'll soon be entitled to £6.45 an hour
- Aged below-18? You'll soon be entitled to £4.55 an hour
Apprentice? You'll soon be entitled to £4.15 an hour
Difference between the 'living wage' and 'minimum wage'
The government sets both the 'National Living Wage' and the 'Minimum Wage' - and all employers must comply.
There is also the 'Living Wage', which is a separate entity - reviewed annually - set up by the Living Wage Foundation. This is an external item factoring in inflation and more. Many employers - such as supermarkets - have chosen it in favour of it over the government's guidelines and therefore pay their workers more as it is believed to be a more realistic living wage.
Currently the UK Living Wage stands at £9.30 an hour, or £10.75 in London. The rates apply to all those aged 18 or over. Here is a full list of the employers that pay it.
