Changing every April, the National Minimum Wage represents the minimum wage that a worker should get. This wage depends on the worker’s age and if they have an apprentice status, but it represents the minimum hourly pay that a worker is entitled to.
The National Living Wage is linked to workers who are 25 years and older, and it’s higher than the National Minimum Wage. 2017’s new rates have been applied since April 1st.
Changes from 2016
First introduced in April 2016, the National Living Wage has seen a bit of an increase this year:
With a 4% increase of hourly wage for workers 25 and over, this will represent a £500 raise every year. Chancellor Philip Hammond has also stated his hopes to raising the National Living Wage to £9 by the year 2020.
London Living Wage
Wages in London, however, may not benefit from these changes, as the lifestyle is much more expensive than in other regions. Some experts say that London workers still don’t earn enough to support their families, and that the rate should be higher than £9.75 in London and than £8.45 in the rest of the UK.
This represents a £95 per week increase in London and a £45 per week increase in other areas. These aren’t compulsory wages, but approximately 3,000 companies have said they would abide them and provide their employees with a higher wage.
Are You on the Right Wage?
The Government’s minimum wage calculator allows you to check if you’re receiving the correct minimum wage and if you’re owed payment from past jobs you’ve had. As an employer, you can check if you have been paying the correct minimum wage and if you owe your employees from past jobs.
Different types of work, however, may be under different wage rates, and you might be unsure as to how much you should be receiving on an hourly rate. Here at Burton & Fisher, we understand the need to receive accurate and expert financial advice, which is why our team is always available to help you with any query you might have.
Whether you need advice about mortgages, pensions, insurances, or other financial areas, our experts are here to help.
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