Measure
National Living Wage
The measure
The Chancellor announced that the main rate of the National Minimum Wage, the National Living Wage, will be increased from £7.83 per hour to £8.21 per hour.
Similar increases will also be applied to lower rates of the National Minimum Wage as follows:
- for 21 to 24 year olds, from £7.38 to £7.70 per hour;
- for 18 to 20 year olds, from £5.90 to £6.15 per hour;
- for 16 to 17 year olds, from £4.20 to £4.35 per hour; and
- for apprentices, from £3.70 to £3.90 per hour.
Who will be affected?
All workers entitled to receive the National Minimum Wage, and their engagers.
When will the measure come into effect?
This measure will be implemented with effect from 6 April 2019.
Our view
The increase to the National Living Wage reflects the positive fiscal outlook described by the Chancellor in the Budget.
Given recent increases in HMRC’s activity in respect of National Minimum Wage and National Living Wage rules, engagers who are required to pay these increased hourly rates should ensure that they take appropriate steps, so as to avoid inadvertently paying workers below the prescribed levels.
Contact
Mark Groom
Partner
Global Employer Services Policy Lead