The Chancellor used his Budget speech to confirm that increased National Minimum Wage (NMW) and National Living Wage (NLW) rates are due to come into effect on 1 April 2018, subject to Parliamentary approval.
The NLW first came into effect on 1 April 2016 and is the minimum hourly rate that must be paid to those aged 25 or over. From 1 April 2018, the NLW will increase by 33p to £7.83. This represents an increase of 4.4%.
The hourly rate of the NMW will increase to £7.38 (a rise of 33p) for 21-24 year olds. The rates for 18-20 year olds will increase to £5.90 (a rise of 30p) and the rate for workers above the school leaving age but under 18 will increase to £4.20 (a rise of 15p). The NMW rate for apprentices increases by 20p to £3.70.
The new rates mirror the recommendations made by the Low Pay Commission (LPC) which were accepted in full by the Government. The independent LPC was established following the NMW Act 1998 to advise the government on the NMW. It is made up of representatives from all sides of industry.
For an easy to follow overview of the Budget announcements please click here and if you have any queries in regards to these wage increases then please do not hesitate to get in touch.