Our Guide To The National Minimum Wage Increase

This week will see the National Minimum Wage have its largest increase since 2007. The rise is set to benefit over 1.4 million workers in the UK.

The National Minimum Wage is in place to protect as many low paid workers as possible but to also ensure that there is no impact on jobs or the economy.

The rate of the National Minimum Wage is set annually on the basis of recommendations by the Low Pay Commission.  They are an independent body who were set up in 1997 and are made up of employers, unions and experts.  They consider factors such as economic growth, average earnings, productively and employment before recommending a new wage.

If you’re unsure how the increase will affect you, take a look below:

Adult Workers
If you are aged over 21, you are classed as the adult workforce. This group of workers will see one of the largest increases of wages, as their earnings will rise from £6.50 to £6.70 per hour.  

18 to 20 Year Olds
If you are aged between 18 to 20, you will see your wage rise by 17p per hour, increasing your hourly rate from £5.13 to £5.30.

16 to 17 Year Olds
The youngest age group will see the smallest increase, as their rate will rise from £3.79 to £3.87 per hour.

Apprentices
The new apprentice rate will see a record breaking 57p hike from £2.73 per hour to £3.30 per hour.

Over the next year, pay rates are set to increase even further by the introduction of the National Living Wage.

From April 2015, those who are aged over 25 will see their pay rise even further to £7.20 per hour.  The National Living Wage is predicted to further increase by 2020, workers who are aged over 25 will receive £9 per hour, due to wider economic growth.  Those who aged from 21 to 24 will be only age group who will continue to receive the adult workforce national minimum wage rate.

If you need any further guidance relating to the National Minimum Wage increase, please visit the official Government website here.

National Minimum WageWage IncreaseNational Living WageEmployment

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