You’ll be aware of the introduction of the National Living Wage in April this year. As well as this there’s the Living Wage, the London Living Wage and the National Minimum Wage. To quote the 70s sitcom – Soap – “Confused? You soon will be”. Ooops – showing my age. So what’s the difference?
You’ll be aware of the introduction of the National Living Wage in April this year. As well as this there’s the Living Wage, the London Living Wage and the National Minimum Wage. To quote the 70s sitcom – Soap – “Confused? You soon will be”. Ooops – showing my age. So what’s the difference?
In a nutshell it’s like this:
National Living Wage:
This is a legal requirement. From 1 April 2016 all staff aged 25 and over must be paid at least £7.20 per hour. The Government intends this to rise and by 2020 a rate of £9 per hour will be achieved.
See our guide here: National Living Wage
The Living Wage:
Not to be confused with the National Living Wage, this has been around for a while. This is not law but advisory. It is based on guidance from the Living Wage Foundation with calculations from Loughborough University. It is currently at £8.25 per hour. This rate is updated each November and employers who apply it should implement within six months.
The London Living Wage:
Similar to the the Living Wage but with a bit added on to allow for the expense of living in the Capital. The rate for this is £9.40 per hour at the moment. This rate is updated each November and employers who apply it should implement within six months. Again, this is voluntary and not law. This is again the Living Wage Foundation but with calculations from Greater London Authority.
The National Minimum Wage :
This one is law and depends on your age and if you are an apprentice. This is updated each October.
Current rates:
Age 21 and over: £6.70
Age 18 to 20: £5.30
Under 18: £3.87
Apprentice: £3.30
The apprentice rate is for apprentices aged 16 to 18 and those 19 or over who are in their first year. All other apprentices will be paid the NMW for their age.
And that’s all there is to it!