In order to be able to make sure you are being paid correctly; It is important to understand the National Minimum Wage. This page will tell you how to make sure you are being paid the right rate.
The National Minimum Wage
The National Minimum Wage is how much money per hour you as a worker are entitled to by law.
It is important to note that the National Minimum Wage changes depending on your age and whether or not you’re an apprentice.
At the moment, most workers in the UK who are age 25 and above must be paid the NLV (National Living Wage) – this is the highest rate of the National Minimum Wage. However from April 2021, this will change to age 23 and above.
To clarify, here is a list of the National Minimum Wage and National Living Rates for 2020/21
What is a Living Wage?
The Living Wage is based on the cost of living. The Living Wage Foundation have set these differently for the UK and London – the UK being £9.30 an hour and London being £10.75 an hour. Employers are not obliged to pay the Living Wage, however over 3,600 employers choose to do so.
What is the difference between the National Living Wage and the Living Wage?
The Living Wage:
- Is not set by the Government
- Applies to workers over 18
- Is optional for employers
The National Living Wage:
- The highest rate of the National Minimum Wage
- IS set by the Government
- Must be paid to all workers over 25