National Minimum Wage Increase

Workers aged over 25 will receive an inflation-busting increase of 33p an hour in their national minimum wage. An above-inflation pay rise of 4.4 per cent starting April 2018 is over the 3 per cent rate of inflation which is in place at the moment. Following this, full-time workers will receive a £600 annual increase. The new national living wage of £7.83 is still less than the £7.90 which was projected in March this year for Budget Responsibility. It is also clear that by 2020 the national living wage may only reach £8.56 and not the £9 per hour as the government heavily publicised in 2016.
Hourly rate increases will also apply for those aged below 25:

  • 21 to 24-year-olds will receive a 33p increase and will get £7.38
  • 18 to 20-year-olds will receive a 30p increase to bring their rate to £5.90
  • 16 and 17-year-old workers will be paid £4.20, after a 15p increase
  • apprentices aged under 19 will get £3.70 in their first year, after a 20p increase

The increases are believed to impact nearly 2 million minimum-wage workers in the UK. However, the increase is still lower than the voluntary “real” wage, which is £10.20 in London and £8.75 outside the capital.
 

Verity Buckingham

About Verity Buckingham

Verity is experienced in all aspects of employment law and corporate immigration matters. She deals mostly with corporate clients advising on contentious and non-contentious employment matters. Verity's contentious practice includes defending claims in the Employment Tribunal and experience of Employment Appeal Tribunal litigation in relation to claims of unfair dismissal, discrimination, equal pay and whistleblowing.

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