Category Archives: National Minimum Wage

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.

IDR accredited as Living Wage employer

We are pleased to announce that Incomes Data Research has today accredited as a Living Wage Employer.

Our Living Wage commitment will see everyone working at IDR, regardless of whether they are direct employees or third-party contracted staff, receive a minimum hourly wage of £8.75 in the UK or £10.20 in London.

The Living Wage is estimated to be the level of hourly pay necessary for a minimum socially acceptable standard of living. It is voluntary and separate to the statutory National Living Wage, which for over 25s is currently £7.50 per hour.

National Living Wage to rise by 4.4% in April

The Government has accepted the Low Pay Commission’s recommendation for a 4.4% increase in the National Living Wage which takes the rate for workers aged 25 and over from £7.50 to £7.83 an hour, effective from 1 April.

There have also been larger increases to the statutory minimum rates for younger workers, in an effort to close the gap between the statutory rate for ‘adult’ workers and that for workers aged under 25. Continue reading National Living Wage to rise by 4.4% in April

NLW leads to significant pay increases in retail

The introduction of the National Living Wage (NLW) in April 2016 has led to a 5.3% increase in median minimum pay rates for established staff across retail. Many employers have revised their pay structures to accommodate this increase, typically by eliminating starter rates or harmonising premiums for unsocial hours. At £7.20, the median rate for the whole sample equals the NLW, though food and non-food retail firms tend to pay higher on average than employers in catering/hospitality. Many firms are paying the new minimum to all staff, despite it being a legal requirement to only pay it to staff aged 25 or over. Continue reading NLW leads to significant pay increases in retail

Statutory minimum rates

The National Minimum Wage (NMW) and National Living Wage (NLW) are set annually by the Government based on recommendations from the Low Pay Commission. The table below sets out current and historical rates. The NLW, which was introduced in April 2016, applies to all staff aged 25 and over, while younger (non-apprentice) staff of at least school-leaving age are covered by the appropriate NMW rate for their age group. The apprentice rate applies to apprentices who are under 19 or in the first year of their apprenticeship. Apprentices who are 19 or over, or have completed their first year, are entitled to the appropriate minimum wage rate for their age. Continue reading this free article