The Chancellor used his Budget speech to confirm that increased National Minimum Wage (NMW) and National Living Wage (NLW) rates are due to come into effect on 1 April 2019.
The NLW first came into effect on 1 April 2016, and is the minimum hourly rate that must be paid to those aged 25 or over. From 1 April 2019 the National Living Wage will increase by 38p to £8.21. This represents an increase of almost 5%.
The hourly rate of the NMW (for 21-24 year olds) will increase to £7.70 (a rise of 32p). The rates for 18-20 year olds will increase to £6.15 (a rise of 25p) and the rate for workers above the school leaving age but under 18 will increase to £4.35 (a rise of 15p). The NMW rate for apprentices increases by 20p to £3.90.
The new rates mirror the recommendations made by the Low Pay Commission (LPC) which have been accepted in full by the government. The independent Low Pay Commission (LPC) was established following the National Minimum Wage Act 1998 to advise the government on the NMW. It is made up of representatives from all sides of industry. The increases will come into effect from April 2019, subject to Parliamentary approval.