National Living Wage & National Minimum Wage:
The government has set a target for the NLW to reach 60% of median earnings by 2020 (subject to sustained economic growth).
Announcements in the Budget include:
Increasing the NLW by 4.9% from £7.83 to £8.21 from April 2019, which will benefit around 2.4 million workers
Accepting recent recommendations by the Low Pay Commission to increase NMW rates from April 2019 as follows:
- Increasing the rate for 21 to 24 year olds by 4.3% from £7.38 to £7.70 per hour
- Increasing the rate for 18 to 20 year olds by 4.2% from £5.90 to £6.15 per hour
- increasing the rate for 16 to 17 year olds by 3.6% from £4.20 to £4.35 per hour
- increasing the rate for apprentices by 5.4% from £3.70 to £3.90 per hour
The hourly rate for the minimum wage depends on your age and whether you’re an apprentice.
You must be at least:
- school leaving age to get the National Minimum Wage
- aged 25 to get the National Living Wage – the minimum wage will still apply for workers aged 24 and under
These rates are for the National Living Wage and the National Minimum Wage. The rates change every April.
||25 and over
||21 to 24
||18 to 20
|April 2017 (current)
More detailed information can be found here
GOOD NEWS FOR EMPLOYERS
Businesses will have their employer National Insurance bill cut by another £1,000 from April 2016, as the Employment Allowance rises from £2,000 to £3,000. The Employment Allowance gives businesses and charities a cut in the employer National Insurance they pay.
This means that businesses and charities will be able to employ 4 people full time on the National Living Wage and pay no National Insurance at all.