Millions of Workers to Receive Pay Rise as Minimum Wage Increases by £1,400
In the coming weeks, millions of low-paid workers across the UK are set to witness an increase in their pay, with the minimum wage experiencing a significant rise. The minimum wage is the lowest hourly rate that employers are legally bound to pay their employees, varying depending on the worker’s age and status. This wage adjustment will affect both full-time and part-time workers, with the rates scheduled to climb starting April 1.
Chancellor Rachel Reeves announced last October that the minimum wage will see an increase of 6.7%, translating to an additional £1,400 per year for a full-time worker on the main minimum wage. It is crucial to note that the exact amount of the pay rise will vary based on the number of hours worked by the individual. Reeves emphasised the government’s commitment to providing a genuine living wage for working individuals, seeing this raise as a significant stride towards fulfilling that promise.
Deputy PM Angela Rayner voiced her support, highlighting the importance of fair compensation for a day’s work. The changes are expected to benefit millions of lower earners, particularly the 18-to-20 age group, who will experience the most substantial increase in wages to date. Different age brackets have specific minimum wage categories: those aged 21 and over receive the National Living Wage, while individuals under 21 are entitled to the National Minimum Wage.
Effective this April, the new rates for both the National Living Wage and the National Minimum Wage are as follows:
– 21 and over: from £11.44 an hour to £12.21 an hour
– 18 to 20: from £8.60 an hour to £10 an hour
– Under 18: from £6.40 an hour to £7.55 an hour
– Apprentice: from £6.40 an hour to £7.55 an hour
It is notable that certain groups, such as the self-employed, volunteers, and company directors, do not fall under these minimum wage regulations. Additionally, some companies voluntarily opt to pay the Real Living Wage, which exceeds the statutory minimum and is based on living expenses. Notably, over 15,000 employers, including Aviva, Everton FC, Ikea, Burberry, and Lush, adhere to the Real Living Wage scheme.
The Real Living Wage is expected to rise to £12.60 per hour outside London and £13.85 per hour within London, with employers required to implement these new rates by May 2025. To be eligible for this wage, employees must be over 18 years old and work for an employer who participates in the Real Living Wage programme. Ensuring fair pay for all, especially those in lower-paid roles, is a crucial aspect of maintaining a balanced and just employment landscape.
In cases where workers suspect they are being underpaid, it is essential for them to scrutinise their payslips and use the minimum wage calculator available on GOV.UK to determine any discrepancies. Upholding the minimum wage is a legal obligation for employers, and organisations found in violation may face penalties from HMRC. Seeking guidance from bodies like the Advisory, Conciliation, and Arbitration Service (Acas) can help individuals navigate the process of addressing underpayment concerns and seeking resolution through the appropriate channels.