Friday, November 22, 2024

What is the UK minimum wage 2024 as major changes announced

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The rate of pay changes every year

Changes to how the minimum wage is calculated were announced earlier this year(Image: Adam Gerrard / Daily Mirror)

The minimum wage is the minimum pay per hour that workers in the UK are entitled to. It was introduced in 1998. The Low Pay Commission (LPC) makes recommendations to the government on the rate of the minimum wage.

It is then up to ministers to decide what it will be. The rates change on April 1 every year. There is a distinction between the National Minimum Wage (NMW) and National Living Wage (NLW).

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The hourly rate for the minimum wage depends on your age and whether you’re an apprentice. However, this could change in the coming months under the new Labour administration.

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What is the minimum wage?

You must be at least school leaving age to get the NMW or aged 21 to get the National NLW. The minimum wage will still apply for workers aged 20. These rates are for the National Living Wage (for those aged 21 and over) and the National Minimum Wage (for those of at least school leaving age). Apprentices are entitled to the apprentice rate if they’re under 19 or aged 19 or over and in the first year of their apprenticeship.

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  • Apprentice – £6.40 an hour
  • Under 18 – £6.40 an hour
  • 18 to 20 – £8.60 an hour
  • 21 and over – £11.44 an hour

Will the National Minimum Wage and National Living Wage go up?

When the last rates were announced, the LPC said its remit for 2024 was to retain the NLW at two-thirds of median pay. Based on this, it predicted a rate of £11.89 an hour, in a range of between £11.61 and £12.18. However, changes to the LPC could mean the NLW could see it rise further. Earlier this summer, the government said it was taking its “first step to deliver on the promise of a genuine living wage for working people.’

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Ministers have overhauled the LPC’s remit to factor in the cost of living when recommending minimum wage rates. ‘Discriminatory’ age bands are also set to be removed. Jonathan Reynolds, the Business and Trade Secretary, and Angela Raynor, the Deputy Prime Minister, have also instructed the LPC to narrow the gap between the minimum wage rate for 18–20-year-olds and the National Living Wage. This will be the first step towards achieving a single adult rate.

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