The National Minimum Wage (NMW) is something which a person must be at school leaving age in order to get. And, for those who are 25 or older, they can get a different, higher rate – the National Living Wage (NLW).
- National Insurance threshold rises in ‘much needed good news’
Changes have been made to both last month, meaning there are now new hourly rates in place.
The National Living Wage has now increased from £8.21 to £8.72.
Meanwhile, it’s the National Minimum Wage which applies for those who are not yet 25-years-old.
This hourly rate depends on age and whether or not the employee is an apprentice.
For instance, those aged 21 to 24, the rate is now £8.20 per hour – up from £7.70 between April 2019 to March 2020.
Meanwhile, 18 to 20-year-olds now have the NMW of £6.45 – previously £6.15.
Those under the age of 18 have a NMW of £4.55 – 10 pence higher per hour than before the rise.
Apprentices, meanwhile, have the NMW of £4.15 per hour.
They are entitled to this rate if they’re aged under 19, or 19 or over and in the first year of their apprenticeship.
Apprentices would be entitled to the minimum wage of their age if they are aged 19 or over and have completed the first year of their apprenticeship.
Should a person want to check whether the National Minimum Wage or National Living Wage is being paid, they can do so online.
The “National Minimum Wage and Living Wage calculator for workers” can be accessed via the government website.
- Savers reveal small and easy ways to save money
Via this service, it’s possible to check whether a person is being paid the National Minimum Wage or National Living Wage.
Additionally, a person can check to see if their employer owes them past payments from the previous year because of underpayment.
Earlier this year, at the 2020 Budget, Chancellor of the Exchequer Rishi Sunak announced plans to increase the National Living Wage.
He said: “By 2024 the National Living Wage will reach two thirds of median earnings.
“On current forecasts, that means a Living Wage of over £10.50 an hour.
The NMW and the NLW differ to the “real Living Wage”.
While the other two are statutory, the real Living Wage is voluntary.
Additionally, it includes a London weighting.
According to the Living Wage Foundation, nearly 6,000 UK businesses pay the real Living Wage.
Source: Read Full Article