ISSUES
: Business and Trade
Chapter 2: Corporate responsibility
38
will get a direct pay rise, and
another 2.6 minimum earning just
over £7.20, who the Resolution
Foundation assume will get a
pay rise to differentiate between
them and lower-paid workers.
Will it make a
difference where
I live?
Torridge in Devon, Rossendale
in Lancashire, Woking in Surrey
and Castle Point in Essex were
named as the areas most likely to
benefit.
The Resolution Foundation said
employers in these areas will see
“significant” increases in their
wage bill.
The biggest city to benefit is
Sheffield, where over a fifth of
employees will qualify for the
higher wage, the report said.
Torsten Bell, director of the
Resolution Foundation, said:
“The national living wage is a
hugely ambitious policy with the
potential to transform Britain’s
low pay landscape. Up to a third
of workers will get a pay rise in
national living wage hotspots,
ranging from Canvey Island to
Eastern Lancashire.
How about in London?
The new rate will have less impact
in London and the South East, with
just 3% of workers in the City set to
have a wage rise on Friday, which
the think tank said reinforced the
importance of the voluntary living
wage of £9.40 an hour in the capital
and £8.25 in the rest of the country.
“Britain’s new legal wage floor will
be felt throughout the country, but
its impact will be bigger in some
Previous rates
The following rates were for the National Minimum Wage.
The rates were usually updated every October.
Year 21 and over 18 to 20 Under 18 Apprentice
2015 £6.70
£5.30 £3.87
£3.30
2014 £6.50
£5.13 £3.79
£2.73
2013 £6.31
£5.03 £3.72
£2.68
2012 £6.19
£4.98 £3.68
£2.65
2011 £6.08
£4.98 £3.68
£2.60
2010 £5.93
£4.92 £3.64
£2.50
Current rates
These rates are for the National Living Wage and the National Minimum
Wage from 1 April 2016.
Year
25 and over 21 to 24 18 to 20 Under 18 Apprentice
April 2016
(current rate)
£7.20
£6.70 £5.30 £3.87
£3.30
National Minimum Wage and
National Living Wage rates
The hourly rate for the minimum wage depend on your age and whether
you’re an apprentice.
You must be at least:
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school leaving age to get the National Minimum Wage
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25 to get the National Living Wage – the minimum wage will still apply
for workers aged 24 and under.
National Minimum Wage rates change every October. National Living
Wage rates change every April.
The ‘apprentice’ rate is for apprentices aged 16 to 18 and those aged 19
or over who are in their first year. All other apprentices are entitled to the
minimum wage for their age.
Source: National Minimum Wage and National Living Wage rates
GOV.UK, 12 April 2016
areas than others. Relatively few
employees will benefit in high-paying
parts of Britain such as the City of
London and Camden, reminding us
of the need to see more employers
sign up to pay the higher voluntary
living wage.
Will businesses cope?
Bell says: “Of course pay rises don’t
come free so employers in some
sectors and parts of the country will
feel the pressure more than others.
“That’s why it’s vital that
businesses and national, regional
and local government make the
successful implementation of the
new legal minimum a priority.”
30 March 2016
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The above information
has been reprinted with
kind permission from The
Huffington Post UK. Please
visit
.
co.uk for further information.
© 2016 AOL (UK) Limited
“The new rate will
have less impact in
London and the South
East, with just 3% of
workers in the City
set to have a wage
rise”
