All posts by Georgia Young

Increase to statutory minimum rates

The Government has raised the minimum wage based on the Low Pay Commission’s recommendations. The new statutory minimum for workers aged 25 and over, or the National Living Wage (NLW), will increase by 4.9% to £8.21 in April 2019.

The LPC have said that the NLW is on track to rise to £8.62 in April 2020 based on the target of 60% of median earnings.

Bryan Sanderson, Chair of the LPC, said:

I am pleased that the Government has again accepted in full the Low Pay Commission’s recommendations for future minimum wage rates. The increase in the National Living Wage (NLW) to £8.21 in April 2019 will ensure a pay rise for the lowest-paid workers that exceeds both inflation and average earnings.

2017 Pay settlements summary

Incomes Data Research has monitored 667 pay reviews for 2017, covering over 6,900,000 employees. The median increase for the whole economy remained the same at 2% from the previous year. The private sector however has risen from 2% to 2.2% in 2017. This has been especially noticeable at the lower quartile which showed an increase of 0.5%, whereas the upper quartile fell slightly from 2.78% to 2.75%. Across the whole economy, the lower quartile increased by 0.5% and the upper quartile rose by 0.1%, suggesting modest upwards pressure on pay, which may be due to higher inflation rates across 2017.

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