When does minimum wage go up?

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Under the measures set out by Chancellor Rishi Sunak in his October Budget, the minimum wage will rise later this year. This will be a welcome boost to millions of low-paid workers as the cost of living continues to spiral. Here’s when those on the minimum wage can expect a pay rise.

On October 27, 2021, the Chancellor announced a range of measures to help struggling Brits in his Autumn Budget.

Currently, the rates set from April 2021 to March 2022 are just £8.91.

This represents an increase of 59 pence per hour or 6.6 percent.

But some workers will be excluded from this hefty pay rise.

When does minimum wage go up?

In his Autumn Budget, Mr Sunak said the National Living Wage will rise to £9.50 from April 1, 2022.

The National Living Wage (NLW) is only available to those who are 23-years-old or older.

Younger workers on the minimum wage will see smaller hikes to their pay rise this April.

The National Minimum Wage (NMW) applies to those aged 16 to 22 years old.

Although the National Minimum Wage will be increased to help close the gap between it and National Living Wage, workers under 23 will still receive considerably smaller pay packets than their older colleagues.

The 21 to 22-year-old rate will increase from £9.18 to £8.36. This represents a 9.8 percent rise.

The 18 to 20-year-old rate will rise from £6.56 to £6.83. This represents a 4.1 percent rise.

The 16 to 17-year-old rate will jump to £4.81 in April 2022 from its current £4.62 rate, which equates to a 4.1 percent rise.

The minimum wage for apprentices will also be increased. Its 51p rise will bring it in line with the 16 to 17-year-old rate.

Until March 2022, the current rate of £4.30 will be in place before jumping by a whopping 11.9 percent to £4.81 percent in April.

In response to the wage increases the Chair of the Low Pay Commission, Bryan Sanderson said: “The rates we recommended will put money in the pockets of care-workers, food distributors and many other groups of the lowest-paid members of our society up and down the UK.”

He added: “The pandemic has been an exceptionally difficult period for businesses and workers alike, but the labour market has recovered strongly and the economy is expected to continue to grow over the next year.

“This is attributable in no small part to comprehensive Government support.”

However, others have blasted the rises as not going far enough.

Frances O’Grady, general secretary of the Trades Union Congress, told the Guardian: “Low pay is endemic in modern Britain. Millions are in jobs that don’t pay the bills or put food on the table.”

She added the current rises weren’t large enough and the Government should raise the legal minimum wage to £10 an hour immediately.

On top of this, she said zero-hours contracts should be banned and trade unions should have greater access to workplaces to negotiate improved pay deals.

While Gary Smith, GMB Union general secretary, said: “Workers are facing a cost-of-living crisis, and employers face a recruitment crisis, after years of politically driven cuts and a race-to-the-bottom by many employers.”

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