From 1st April 2016, a new mandatory national living wage (NLW) comes into effect in the UK. This will be £7.20 an hour for workers aged 25 years or older and not in the first year of apprenticeship. The NLW is projected to change every year and is projected to rise to atleast £9 by 2020.
What is happening to the National Minimum Wage (NMW)?
The national minimum wage is the compulsory minimum level of pay set in October every year. It varies by age and the current rates applicable from Oct'15 are as follows:
- £6.70 per hour for workers aged 21 years old and over
- £5.30 per hour for workers aged 18 to 20 years old
- £3.87 per hour for workers above school leaving age but under 18 years old
- £3.30 for apprentices aged 16 to 18 or aged 19 years old or over and in the first year of their apprenticeship