Get ready for the increase to the National Minimum Wage

The national living wage, the statutory national minimum wage for those aged 25 and over, will increase by nearly 5% from the 1st April 2019, from £7.83 to £8.21.

The Low Pay Commission (LPC), which recommended the increase, estimated that the increase will benefit around 2.4 million workers. Subject to sustained economic growth, the government’s aim is for the national living wage to reach 60% of median earnings by 2020.

Announcing the increase to the budget in October, the chancellor Philip Hammond said: “From April, the National Living Wage will rise again, handing a full-time worker a £690 annual pay increase.”

The Treasury says the annual earnings of a full-time minimum wage worker will have increased by over £2,750 since the introduction of the NLW in April 2016.

The government also accepted all of the LPC’s recommendations for the other national minimum wage increases to apply from the 1st April 2019:

  • increasing the rate for 21 to 24 yr olds by 4.3% from £7.38 to £7.70 per hour

  • increasing the rate for 18 to 20 yr olds by 4.2% from £5.90 to £6.15 per hour

  • increasing the rate for 16 to 17 yr olds by 3.6% from £4.20 to £4.35 per hour

  • increasing the rate for apprentices by 5.4% from £3.70 to £3.90 per hour

  • increasing the accommodation offset by 7.9% from £7.00 to £7.55

In the coming months, the government will consult with the LPC and others on the LPC’s remit for 2020 onwards.

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