This year’s April Fool’s Day will see thousands receive a pay rise.
All eligible workers will see a boost in their pay as both the National Living Wage and the National Minimum Wage increase as of Saturday this week.
The National Living Wage has to be paid to any worker over the age of 25. The hourly rate for the National Living Wage is due to increase from £7.20 to £7.50 as of April 1, as confirmed by Philip Hammond in his Spring Budget 2017. This will mean around a £600 a year pay rise for full time workers.
Philip Hammond has indicated that it is expected for the National Living Wage to increase to £9 by 2020.
The National Minimum wage is also due an increase and will apply to workers under the age of 25 who are not covered by the National Living Wage increase. Workers aged 21-24 should currently be paid £6.95, which will be increased to £7.05 as of April 1.
Minimum hourly wage for 18 to 20-year-olds is going up from £5.55 to £5.60 and under 18s will see a rise from £4 to £4.05. Different rates apply for apprentices. All workers are entitled to the National Living and the National Minimum Wage.
A number of businesses, currently at 3,000, have also signed up to the Real Living Wage, a voluntary scheme recognising the cost of living. This is the amount set by the charity Living Wage Foundation, and accredited employers include local authorities, NHS trusts, banks, retailers, charities and construction companies. The foundation’s calculations put the real Living Wage at £8.45 an hour – and £9.75 in London. There is no legal obligation for your employer to pay this rate.
If you do not think you are receiving the correct minimum wage contact your employer direct. If you have further enquiries about your employment or any legal aspect of it, contact us direct on 01616 966 229.