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National living wage and minimum wage rise today

National living wage and minimum wage rise today

Millions of workers have received a pay rise today as the national living wage and minimum wage rises kick in.

The so-called national living wage paid to workers aged 25 or over has risen from £7.83/hour to £8.21/hour, as announced in last October's Budget.

Introduced in July 2015, the compulsory national living wage is the lowest wage which can legally be paid to employees aged 25 or over. It is adjusted every April. It's higher than the compulsory national minimum wage, which applies at varying rates to employees aged under 25 (as the table below illustrates) and is also rising.

How are wages changing?

Compulsory living and minimum wages

TABLE_CELL_STYLE National living wage (hourly) National minimum wage (hourly) (1)
  Age 25+

Age

21-24

Age

18-20

Age

under 18

Apprentice
Previous level £7.83 £7.38 £5.90 £4.20 £3.70
From today £8.21 £7.70 £6.15 £4.35 £3.90

(1) Applies from school leaving age, which varies around the UK.

However, the campaign group Living Wage Foundation believes employees currently need to earn at least £9/hour (£10.55/hour in London) to live and support their families.

What does the Government say?

Business Minister Kelly Tolhurst said: "Since the national living wage was announced in 2015, it has helped protect the lowest paid, increasing faster than inflation and average earnings."