The Chancellor has confirmed that the National Living Wage (NLW) will increase in April 2017 from £7.20 to £7.50 per hour. This represents an increase of 4 percent.
The new NLW for workers aged 25 and over came into force on 1 April of this year, and is a premium added on to the National Minimum Wage (NMW). The current NMW rates are as follows:
- Workers aged 21 to 24: £6.95
- Workers aged 18 to 20: £5.55
- Young workers aged under 19 but above compulsory school age who are not apprentices: £4.00
- Apprenticeship rate: £3.40
It is not clear at this time whether the NMW will also increase in April. However, the government states that its aim is to increase the NLW to £9 per hour by 2020. Given the uncertainty that Brexit has created for the economy and the labour market, only time will tell whether this aim is successfully implemented.