Millions of people are set to receive an annual pay rise of £585 once the new National Living Wage comes into play this April.
The news was announced last year in the chancellor’s Autumn statement, as well as the Budget that happened earlier this month. The raise is in place in a bid to reach George Osborne’s vision of reaching the minimum wage to £9 by 2020 and give a huge boost to the economy.
However, the raise in national living wages is only going to benefit those over the age of 25. The wages for people beneath this age are as follows (commencing on 1 April 2017):
- Apprentice: £3.50
- Under 18: £4.05
- 18-20: £5.60
- 21-24: £7.05
- 25+: £7.50
This means that if you should be expecting to see a small rise in your monthly wages when the changes are put into place next month. Even just a 35p pay rise from £7.20 to £7.50 per hour will bag you an extra £585 per year!
Whilst these changes are ready to be rolled out next month, there’s a possibility that the minimum living wage could rise even further. Many experts have expressed that they do not find the current payouts to be satisfactory, and some argue that the minimum wage should be at least £2 higher in areas in and around London.
Director of the Living Wage Foundation, Katherine Smith, commented:
“”The reality, however, is that a fifth of UK workers aren’t paid enough to live on. There’s still a gap between the government minimum and our real Living Wage of £8.45 in the UK and £9.75 in London, which is based on what families need to earn to meet everyday costs.”
On the start date of the wage rises, employers will need to ensure that they’re paying staff the correct rates. As an employee, you should check that you’re receiving the minimum wage for your age group by checking your payslip at the end of April.