National Minimum Wage rises from 1st April 2022 –
The Chancellor announced in the Budget yesterday the annual increases in the national living and minimum wage. This followed the recommendations of the Low Pay Commission. The new rates will be:
- For workers aged 23 and over the national living wage rate will rise to £9.50 (up from £8.91)
- For workers aged 21 to 22 the national minimum wage rate will rise to £9.18 (from £8.36)
- For workers aged 18 to 20 the rate will rise to £6.73 (from £6.56)
- For workers aged 16 to 17 the rate will rise to £4.81 (from £4.62)
- The Apprentice rate will rise to £4.81 (from £4.30)
The Real Living Wage –
In November 2020 the ‘Real’ Living Wage (voluntary) rose to £9.50 outside London and £10.85 within London. On 15th November 2021 it increased to £9.90 outside London and £11.05 within London – this increase must be implemented by participating Employers by 15th May 2022.
Over 800 more employers have the joined the Living Wage Foundation since the start of the first COVID lockdown in March 2020. Now, nearly 9000 employers pay the Real Living Wage. You can see more details here.
The Statutory National Minimum Wage is based on a target to reach 66% of median earnings by 2024. The real Living Wage rates are higher because they are independently-calculated based on what people need to get by. The Living Wage Foundation encourage employers that can afford to do so to ensure their employees earn a wage that meets the costs of living, not just the government minimum.