The National Living Wage (NLW) is the hourly rate of pay set by the Government as the minimum that a worker needs to earn to cover the basic cost of living.
This, compulsory, ‘National Living Wage’ was introduced in April 2016 for workers aged 25 and over. Both part time and full time workers became entitled to the National Living Wage.
The NLW ensures everyone aged 25 and over receives a minimum amount per hour. In 2016 this was £7.20 and there are plans for this to rise to £9.00 per hour by the year 2020. Rises are recommended by the Low Pay Commission.
The National Living Wage replaced the National Minimum Wage for everyone aged 25 and above.
Please note, that the National Living Wage rate is not connected to the rates used by the ‘Living Wage Foundation’ which are voluntary rates set independently for London and the rest of the UK to reflect the basic cost of living.
The National Living Wage does not affect people aged 24 and under currently being paid the National Minimum Wage.
How is the National Living Wage different to the National Minimum Wage?
The National Minimum Wage remains in place and the compulsory National Living Wage is a top-up for workers aged 25 and over.
