The National Minimum and National Living Wage (NM/NLW) has today, Monday 01 April, increased by almost five per cent.
HM Revenue & Customs (HMRC) – who enforces the legal minimum wage – said the rise means 1.8 million workers will receive an additional £690 from today.
What’s changed?
The National Living Wage (for over 25s) has increased from £7.83 to £8.21, while the National Minimum Wage (for workers under the age of 25) has increased to £7.70 per hour for 21 to 24-year-olds and to £6.15 for 18 – 20-year-olds, providing an additional £580 and £455 over the year respectively.
The rise takes effect from today, meaning employers are required to adjust their payroll systems or risk penalties.
Commenting on the announcement, Business Minister Kelly Tolhurst said: “We are committed to making sure that UK workers get a fair day’s pay and the rise in the National Living and Minimum Wage, benefiting millions of people, delivers on this commitment.
“Since the National Living Wage was announced in 2015, it has helped protect the lowest paid – increasing faster than inflation and average earnings. Our minimum wage rates are among the highest in the world and, through our modern Industrial Strategy, we are determined to end low pay and workers get a fair day’s pay for a fair day’s work.”
Chancellor of the Exchequer, Philip Hammond, added: “This government is dedicated to increasing the wages of the lowest paid which is why we introduced the National Living Wage and have continued to increase the National Minimum Wage rates – all of which will rise again today and benefit millions of workers.”
The increase forms part of a pre-planned package of measures designed to increase the living standards and enforce the rights of workers.
As part of this, on 06 April all workers – including casual and zero-hour workers – will have the right to receive a payslip, while the maximum employment tribunal fines for employers rise from £5,000 to £20,000.