Some news about The Minimum Wage Increase and the Living Wage

Minimum Wage Increase The National Minimum Wage (Amendment) Regulations 2018 have been laid before parliament.

They provide for the annual increase to the minimum wage and national living wage with effect from 1 April 2018 as follows:-

• 25+ – £7.83 (previously £7.50)
• 21-24 – £7.38 (previously £7.05)
• 18-20 – £5.90 (previously £5.60)
• <18 – £4.20 (previously £4.05)

The accommodation offset will be £7.00 per day (previously £6.40).

How is it different from the government’s ‘national living wage’?

In April 2016 the government introduced a higher minimum wage rate for all staff over 25 years of age inspired by the Living Wage campaign – even calling it the ‘national living wage’.

However, the government’s ‘national living wage’ is not calculated according to what employees and their families need to live.

Instead, it is based on a target to reach 60% of median earnings by 2020. Under current forecasts this means a rise to less than £9 per hour by 2020.

For under 25s, the minimum wage rates also take into account affordability for employers.

The real Living Wage rates are higher because they are independently-calculated based on what people need to get by. That’s why we encourage all employers that can afford to do so to ensure their employees earn a wage that meets the costs of living, not just the government minimum.

The National Minimum Wage (including the “national living wage”) is the legal minimum an employer can pay an employee. It is set by the UK Government.

Although changing, the current National Minimum Wage is £5.60 per hour for 18-20 year olds, rising to £7.05 per hour for 21-24 year olds, then to the UK Government’s “national living wage” of £7.50 for over 25s. The UK Living Wage is £8.75 per hour.

The 2018 Living Wage Champions Awards

The 2018 Living Wage Champion Awards  are now open for applications. The Living Wage Champion Awards celebrate individuals and organisations that have made an outstanding contribution to the  Living Wage movement.

The Awards are open to all accredited Living Wage Employers, Recognised Service Providers and individuals who have gone above to promote the real Living Wage.

Katherine Chapman, Director of the Living Wage Foundation, said:

“There are so many employers and individuals doing incredible work to promote and grow the Living Wage movement. They are making huge differences to the lives of thousands of workers and communities throughout the UK, and this is our chance to celebrate them.

“We know that we’ll receive some fantastic applications from our 3,800-strong employer network, and we look forward to joining them in May. The Living Wage movement is growing all the time, as more and more employers commit to pay a fair day’s pay for a hard day’s work.”

Thank you.


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