MANY UK workers received a pay boost when the National Living Wage was increased on April 1, 2018.
But Chancellor Philip Hammond has announced a further increase for some workers from 2019.
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What is the National Living Wage and when was the 2018 increase?
The National Living Wage is the amount of money all employees aged over 25 are legally entitled to.
It used to be known as the National Minimum Wage, but it was re-branded in 2016.
The National Living Wage increased from £7.50 to £7.83 for those aged 25 and over.
The 33 pence-an-hour rise was introduced on Sunday April 1, 2018.
From April 2019, the National Living Wage will increase by 38 pence-an-hour to £8.21.
The compulsory National Living Wage was introduced in 2016.
The first National Minimum Wage was set in 1998 by the Labour government.
Before that, no official rate existed although trade unions battled hard to fight their workers’ corner.
In Budget 2018, Chancellor Hammond announced that lowest-paid workers will get another pay rise from next year to a minimum of £8.21 per hour.
It’s a five per cent hike, which will come into force from April, and will benefit around 2.4million workers.
Mr Hammond said: “From April [the National Living Wage] will rise again, handing a full-time worker a £690 annual pay increase.”
Hammond is aiming to get the wage to £9 by 2020.
It is different to the real living wage which is voluntary and not fixed by the government.
PA:Press Association
What is the National Minimum Wage?
The National Minimum Wage is the amount workers aged under 25, but of school-leaving age, are entitled to.
However, the amount differs depending on age and whether the worker is on an apprenticeship scheme.
From April 2018 the rate for National Living Wage and National Minimum Wage is:
- 25 and over: £7.83
- 21-24: £7.38
- 18-20: £5.90
- Under 18: £4.20
- Apprentice: £3.70
From April 2019 the rate for National Living Wage and National Minimum Wage will be:
- 25 and over: £8.21
- 21-24: £7.70
- 18-20: £6.15
- Under 18: £4.35
- Apprentice: £3.90
The national limits are legally binding.
Anyone who thinks they are not getting the National Living Wage or National Minimum Wage should complain to their employer in the first instance.
If this does not get anywhere, the next step is to take the complaint to HMRC who will investigate.
Which workers do not qualify for the National Minimum Wage or National Living Wage?
Those who are self-employed, voluntary workers, company directors and family members who live in the home of the employer and do household chores do not qualify for either rate.
There is no difference in pay for those that live in London compared to elsewhere.
The only discrepancy is for people working in agriculture or horticulture.
Workers already employed before October 1, 2013, are entitled to the pay set under their contract of employment.
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