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Recruitment and HR Blog

National Minimum Wage changes

11th September 2014

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The chancellor George Osborne has suggested that the NMW could reach £7.00 an hour by 2015-16.

The calculated living wage however, is set at a higher rate.

Unlike the national minimum wage, the living wage is an informal benchmark, not an enforceable minimum level of pay. It is simply based on the amount an individual needs to earn to cover the basic cost of living.

The living wage is currently set at £8.80 an hour in London and £7.65 in the rest of the UK.

By comparison, the national minimum wage is significantly lower.

Is it time for the living wage to become mandatory?

Sources;           Recruiter Published; 27th Feb 2014

GOV.UK Published; 22nd August 2014

BBC News Published; 24th June 2014 

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