Over the coming months, workers pay packets across the UK will be on the increase as new Minimum Wage Rules rules come into effect.
From April 1st, new rules that were agreed in 2017 become live, increasing the hourly rate paid to workers over 25 years of age from £7.50 to £7.83. This 4.7% increase could leave some people with as much as £600 better off. That’s equivalent to £50 per month – or 33p extra an hour.
In addition to this the UK employment market will also see an increase to the Personal Allowance, the amount you can earn in a year tax-free, from £11,500 to £11,850.
This rise means employees will be able to earn up to £350 more a year without having to pay income tax – anyone above the threshold will save an estimated £70 a year.
New ‘minimum wage’ rates for 2018
Aside from the national living wages, company bosses are currently legally required to pay their workers the minimum wage. From April 1st, this will also see several increases including the following:
- Aged 21-24: The current rate is £7.50; however, this will rise to £7.83
- Aged 18-20: The current rate is £5.60; however, this will rise to £5.90
- Aged below-18: The current rate is £4.04; however, this will rise to £4.20
- Apprentice: The current rate is £3.50; however, this will rise to £3.70
The ‘National Living Wage’ and the ‘Minimum Wage’ are both set by the government and all employers must comply. However, the ‘Living Wage’ is a completely separate entity set up by the Living Wage Foundation and is also reviewed annually.
If you’d like to find out more information about the National Living Wage or the Minimum Wage changes, please contact one of our recruitment experts on 0330 111 5353 or email firstname.lastname@example.org.