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What is the National Living Wage?

I have a small team and have heard that the National Living Wage is due to go up in April – could you please tell me by how much?

The National Living Wage will increase from £7.83 to £8.21 per hour from April 2019. For each member of staff working full time, this increase could cost an employer on average of over £700 per year. Workers aged 25 or over and who are not in the first year of an apprenticeship, are legally entitled to the National Living Wage.

National Minimum Wage rates

The National Minimum Wage rates from April 2019 will increase as stated below:

•             Aged 21 to 24 - an increase from £7.38 to £7.70 per hour

•             Aged 18 to 20 - an increase from £5.90 to £6.15 per hour

•             Aged 16 to 17 - an increase from £4.20 to £4.35 per hour

•             Apprentices – an increase from £3.70 to £3.90 per hour

The new rate will apply to the next pay reference period that begins on or after the date:

  • a rate increase begins
  • an employee reaches a new age bracket.

For example:

An employee paid on the 25th of each month will start to receive the new rate of minimum wage from 26th April onwards as this is the start of the pay reference period beginning after the increase.

So, the employee will not see the increase in their wages until the pay date 25th May 2019.

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