From today the national minimum wage (NMW) will rise by 20p from £6.50 to £6.70 per hour for adult workers. The NMW will also increase for 18 to 20 year olds by 17 pence to £5.30 per hour, and by 57 pence to £3.30 for apprentices.
The government said the 3% increase in the NMW for adult workers is the largest increase since 2006, and it also means the NMW is closer to the average UK salary than ever before. As a result of the increase, a full-time employee working 40 hours will see the largest cash increase in their annual pay packets since 2008.
There’s also positive news for apprentices, with their rise in wages seeing the biggest ever increase, and those working full time receiving over £1000 more per annum.
Business Secretary Sajid Javid said:
“As a one nation government we are making sure that every part of Britain benefits from our growing economy and today more than 1.4 million of Britain’s lowest-paid workers will be getting a well-deserved pay rise.”
The increase comes six months before the government is set to introduce a new mandatory National Living Wage (NLW) for workers aged 25 years and above. Initially, the NLW will be set at £7.20 and is no doubt good news for millions of workers, but it will also mean increasing costs for businesses across the UK.
If you’re an employer, what impact will the increase have on your business and how do you feel about introducing the living wage?
If you’re a jobseeker, will the introduction of the living wage make a significant impact on your life?