The National Living Wage will rise by 6.6% today

The National Living Wage will increase to £9.50 an hour from April 1, 2022.

The rate, which applies to workers aged 23 and over, will increase by 59p per hour from the current rate of £8.91. This is an increase of 6.6% in the NLW, higher than the current inflation rate of 6.2% in the CPI.

This will mean the lowest paid workers will see their annual income rise by £1,000, it has been estimated.

Minimum wage rates for young workers will also increase. The national minimum wage will drop from £8.36 an hour to £9.18 an hour for people aged 21-22; £6.56 to £6.83 for 18 to 20 year olds; £4.62 to £4.81 for under 18s; and £4.30 to £4.81 an hour for apprentices.

The Treasury said: “In introducing these changes, which are broadly in line with previous increases, the government accepts all recommendations made by the Low Pay Commission – an independent advisory board which brings together economists, employer and employee representatives.

“The government remains committed to achieving its ambitious target of a national living wage of two-thirds of median earnings and expanding it to include workers over 21 by 2024, economic conditions permitting. “

Chancellor Rishi Sunak said: “This is a government that is on the side of the workers. This wage increase ensures that we make work pay and keeps us on track to achieve our goal of ending low pay by the end of this legislature.

He confirmed the increase in his budget last October.

Joanne Frew, UK Employment Law Manager at DWF, said: “This timely annual increase will be welcomed by many as the UK faces the challenges of a cost of living crisis.

“Recognizing that young workers have been hit hard by the pandemic, raising the minimum wage is a clear step in the right direction. However, many will argue that the increases do not go far enough to counter soaring inflation and the rising cost of living.

“As the lowest paid workers struggle to manage, employers will come under increased scrutiny when it comes to NMW compliance. Due to the highly complex nature of the NMW’s calculations, many leading employers have inadvertently broken the law, resulting in substantial penalties and reputational damage. Where workers are paid at or near the NMW, employers should consider undertaking an audit of the NMW to minimize risk.

This article was updated on March 31, 2022. It was originally published on October 25, 2021.

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