Minimum Wage Increase, but not for everyone.
Thursday, October 6, 2016
Not all minimum wage workers have had a pay increase in October. Recent rises in National Minimum Wage only applied to those below 25 years old.
From October 1st 2016 workers aged 21 to 24 years or more will be legally entitled to a minimum hourly pay rate of £6.95. This has increased from £6.70 set last October but is still below the National ‘Living Wage’ of £7.20 per hour set in April for workers 25 years and over.
The TUC recommends that the living wage should apply to all workers and some go further to contend that the National Living Wage is a misnomer because of the vast differences in the cost of living across the UK.
The London Living Wage has been set at £9.40 per hour and the living wage for the rest of the country calculated to be £8.25 per hour by the Centre for Research in Social Policy. These rates are reviewed every November and are likely to increase next month.
The London Living Wage is set by the Greater London Authority but is voluntary and employers choose whether or not to pay it.