UK NMW Now in Force
The NMW is set annually on the basis of recommendations from the Low Pay Commission: an independent body of employers, unions and experts. In February 2015 a rate of £6.70 was recommended to Government to take effect from October, which had been accepted. It is the largest real terms increase in the NMW since 2007 and could return the NMW three-quarters of the way back to its highest previous real terms value.
Now in force, since 1st October 2015, the National Minimum wage figures are as follows:
- 21 and Over – £6.70 per hour
- 18 – 20 years old – £5.30 per hour
- 16 – 17 years old – £3.87 per hour
Apprentices – £3.30 per hour (in their first year and aged 16-18)
A compulsory National Living Wage is due to be introduced in April 2016 for all working people aged 25 and over, and will be set at £7.20 per hour. The current National Minimum Wage for those under the age of 25 will continue to apply.
The Low Pay Commission which currently recommends the level of the minimum wage will recommend any future rises to the National Living Wage rate.
The new National Living Wage is different from the Living Wage, which is an hourly rate of pay set independently by the Living Wage Foundation and is calculated according to the basic cost of living in the UK.