In today’s budget, Chancellor Rishi Sunak announced a rise in the National Living Wage.
This was following recommendations made by the Low Pay Commission.
Employment Partner Paul Burton outlines the new rates below…
What’s the difference between minimum wage and living wage?
The National Minimum Wage is the minimum hourly pay that almost all workers under the age of 23 are entitled to.
Whereas the National Living Wage is the minimum hourly pay that almost all workers over the age of 23 are entitled to.
The National Living Wage is higher than the Minimum Wage.
What is the current national living wage?
Below are the current rates for the National Living Wage (NLW) and National Minimum Wage (for those of at least school leaving age) per hour. The rates normally change on 1st April 2022.
Apprentice – $4.30
Under 18 – £4.62
18-20 – £6.56
21-22 – £8.36
23 and over (NLW) – £8.91
What is the living wage rising to?
The National Living Wage will rise from £8.91 per hour to £9.50 from 1st April 2022.
Assuming a 40-hour working week, the new minimum wage amounts to a salary of £1,646 per month or £19,760 per year.
Other Statutory Rate Changes in April 2022
While none were specifically referred to in the budget, statutory rate changes usually follow any announced change to the minimum wage.
These are often calculated annually and later in the year, so we will update on any changes to sick pay, maternity and paternity pay or the ‘weekly pay’ calculation as and when these may be announced.
To keep updated with any statutory rate changes, please subscribe to our employment email list here.
Click here to read the full article, where Paul discusses how this change affects employers.