The Recent Change To Minimum Wage Rule

Recent updates to the rules concerning minimum wages were recently announced and implemented, coming into effect on April 1st of this year. There has been an increase in the National Minimum Wage and National Living Wages rates. The minimum wage a worker should get will depend on their age and if they are an apprentice and the National Minimum Wage is the minimum hourly pay that nearly all workers are entitled to.

However, the Low Pay Commission estimates that a significant number of workers may not be being paid what they should be, despite the new rules already being in force with the updated rates showing on the first full pay cycle after April 1st.

The current statutory minimum wage rates have recently been increased to £6.40 per hour for apprentices and under 18’s. It is £8.60 for those who are aged between 18 - 20 and for those over the age of 21, it is £11.44 per hour. The national minimum wage is not negotiable and whoever your employer is, they must by law pay you the correct amount. However, if you are self employed and are responsible for paying yourself then the rules differ.

The boost in income has been welcomed alongside the recent increase in many welfare benefit rates and of course the two reductions in national insurance rates so far this year. Many workers will be better off than before and it is interesting to note that the adult minimum wage has actually risen by 70% in real terms since its initial introduction.

Last year, the Chancellor announced that as from this April, the increased rates would end low pay in this country, thus delivering on their manifesto promise and that work always pays. There will of course be many who argue the opposite as there is still much to be done to raise standards of living and people are still feeling the impact of the cost of living crisis. Despite the inflation rate having been lowered, prices are still high with families still struggling with essentials such as energy and food. However, as wages are supposed to keep up with rising prices, it is yet to be seen if it is enough to make a difference in ordinary people’s lives. However, progress is definitely being made with the many increases this year improving the financial wellbeing of workers and providing a boost to economic stability.

You can easily check if you are being paid the right amount as there is a free national minimum wage calculator available on the official Government's website which offers guidance and advice regarding what you should be getting paid as well as a variety of other valuable services and information.