Chancellor Philip Hammond has announced increases to the minimum wage rates.

During his Budget speech, Mr Hammond said the National Living Wage will rise by 4.9%, from £7.83 to £8.21 from next April. This amounts to a £690 annual pay increase for a full-time worker.

These are the increases recommended by the Low Pay Commission (LPC) and accepted in full by the government. They will come into effect in April 2019:

  • from £7.83 to £8.21 for workers aged 25 and over (the National Living Wage)
  • from £7.38 to £7.70 for 21-24-year olds
  • from £5.90 to £6.15 for 18-20-year olds
  • from £4.20 to £4.35 for 16-17-year olds
  • from £3.70 to £3.90 for apprentices aged under 19 or in the first year of their apprenticeship.

Mr Hammond said that he wanted the National Living Wage to reach 60% of Median Earnings by 2020, subject to sustained economic growth.

He told the House of Commons: “We will want to be ambitious with the ultimate objective of ending low pay in the UK, but we will also want to be careful – protecting employment for lower paid workers.

“So we will engage responsibly with employers, the TUC, and the LPC itself over the coming months, gathering evidence and views to ensure we get this right – and I will confirm the final remit at the Budget next year.”

Please contact Jacqueline Webb if you would like more information about the issues raised in this article or any aspect of employment law.

Disclaimer: General Information Provided Only.

Please note that the contents of this article are intended solely for general information purposes and should not be considered as legal advice.

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