MILLIONS of Brits will bag a £1,800 a year pay next month when both the National Minimum and National Living wages rise.
The minimum hourly rate for over 21s will rise from £10.42 to £11.44 this April.
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It hands an almost 10% cash boost to nearly three million workers who receive the national living wage and have seen their packets squeezed by inflation.
The hike is the biggest increase in the minimum wage for a decade and for the first time will apply to over-21s, rather than over-23s.
The minimum hourly wage for an apprentice will also increase by more than a fifth from £5.28 to £6.40 an hour.
The national minimum wage and the national living wage are both rates of pay set by the government.
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But both are different from the Real Living Wage – a voluntary minimum that some employers commit to paying, which is £12 or £13.15 in London as of October 2023.
The hourly rate for the minimum wage depends on how old you are and whether you’re an apprentice.
To qualify for the National Minimum Wage you must be of school-leaving age, which is usually above 16.
To get the National Living Wage workers must be aged 23 and above.
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However, it was confirmed before the 2023 Autumn statement announcement that workers aged 21 and over will also be entitled to the National Living Wage from April.
When was the minimum wage introduced?
THE first National Minimum Wage was put in place in 1998 by the Labour government.
It originally applied to workers aged 22 and over, and there was a separate rate for those aged 18-21.
A separate rate for 16-17-year-olds was introduced in 2004, and in 2010, 21-year-olds became eligible for the adult rate of the National Minimum Wage.
The rate is set by the Government each year based on recommendations by the Low Pay Commission (LPC).
How is the minimum wage increasing?
The minimum wage is increasing from April 1, 2024.
The current rates for the National Living wage (for those aged 23 and over) and the National Minimum Wage (for those of school-leaving age) are as follows:
- 23 years and over – £10.42
- 21-22 year olds – £10.18
- 18-20 year-olds – £7.49
- Under 18 – £5.28
- Apprentices – £5.28
From April 1, 2024 workers aged 21 and over will benefit from being able to earn the National Living Wage.
How much is the minimum wage going up by?
The minimum hourly rate for over 21s will rise from £10.42 to £11.44 next April.
This means that nearly three million workers who receive the National Living Wage will get an almost 10% cash boost.
The new rates that will start from April 1, 2024 are as follows:
- 23 years and over – £11.44
- 18 to 20 year-olds – £8.60
- 16 to 17 year olds – £6.40
- Apprentices – £6.40
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Which workers do not qualify for the national minimum wage?
Those who are self-employed, voluntary workers, company directors, and family members who live in the home of the employer and do household chores do not qualify for the minimum wage.
Au pairs, members of the armed forces don’t qualify either.
People on a government employment programme are also not entitled to the payment.
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This post first appeared on thesun.co.uk
