AROUND 2million workers across the UK will see their wages rise today (April 1), which also marks 20 years since the National Minimum Wage launched.
The increase in rates will boost pay packets by up to £750 a year, according to new analysis by the Resolution Foundation.
Women in particular will benefit, says the think tank, as 1.2million of them are paid the National Living Wage or the National Minimum Wage.
Around one in six part-time workers (1.2million) will also see their pay packets boosted.
The North East of England is the area of the UK that will see the biggest impact, according to the Resolution Foundation, as the region has the largest proportion of minimum wage workers in Britain at one in ten.
Meanwhile those in the hospitality and retail sectors are among those who will see the biggest impact with around one in four hospitality workers and one in seven retail workers to see their wages rise.
Do I qualify for the National Living or Minimum Wages?
HOURLY National Minimum Wage rates have been in place for 20 years but the National Living Wage for those aged 25 and over was only introduced in April 2016.
To get the National Minimum Wage workers must be at least school leaving age, which is classed as the last Friday in June of the school year they turn 16.
You have to be at least 25 or over to get the National Living Wage.
Some companies may also voluntarily choose to pay the London Living Wage or the UK Living Wage, which are calculated independently of Government by think tank the Resolution Foundation.
It currently recommends an hourly rate of £10.55 in London and £9 outside.
The think tank will publish its next set of recommended pay rates in the autumn.
How much you’re paid under the National Living Wage and the National Minimum Wage depends on your age and whether you’re an apprentice or an employee.
Here’s what’s changing:
- The National Living Wage, which is for those aged 25 and over, is rising by 38p (4.8 per cent) an hour from £7.83 to £8.21.
- The National Minimum Wage for those aged 21 to 24 is rising by 32p (4.3 per cent) an hour from £7.38 to £7.70.
- The National Minimum Wage for those aged 18 to 20 is rising by 25p (4.2 per cent) an hour from £5.90 to £6.15.
- The National Minimum Wage for those aged under 18 is rising by 15p (3.5 per cent) an hour from £4.20 to £4.35.
- The National Minimum Wage for apprentices – those aged under 19 or 19 or over and in the first year of their apprenticeship – is rising by 20p (5.4 per cent) from £3.70 an hour to £3.90.
This year also marks 20 years since the National Minimum Wage was created, according to the Resolution Foundation.
Its research shows that over the past 20 years, the National Minimum Wage has risen from £3.60 an hour in April 1999 to £8.21 on Monday.
The think tank adds that the number of people on the minimum wage has also grown rapidly – from just 3 per cent of workers in April 1999 to an estimated 12 per cent of workers by April 2020 (3.3million in total).
Nye Cominetti, an analyst at the Resolution Foundation, said: “The minimum wage is turning 20 on Monday, and it’s celebrating with a bang – a pay rise for 2million workers.
“This policy, condemned as a jobs killer when it was first introduced, has turned out to be one of Britain’s biggest ever policy successes for living standards.”
How to get a pay rise
HERE are recruitment experts’ top tips to get a pay rise in 2019:
- Do your research on the salaries of other similar roles
- Make sure you time your request right
- Prepare your case in advance
- Be clear and specific about what you want and why you deserve it
- Remember to stay confident
- Express enthusiasm
- Aim high
- Don’t forget about additional perks, such as increases holiday, if your boss won’t agree to a pay rise
- If you can’t get a pay rise, consider getting a new job
See our guide to getting a pay rise for more top tips.
But Katherine Chapman, director of the Living Wage Foundation, doesn’t believe the minimum wage goes far enough. She said: “Today’s increase in the Government minimum wage will provide a welcome boost to low pay workers.
“But around 6million workers still earn less than the real Living Wage and struggle to keep their heads above water.
“Many are unable to afford even the basics like decent family meals, or a warm and safe home.”
Chancellor Philip Hammond announced in his Spring Statement that the Government has appointed Professor Arindrajit Dube to review how the National Minimum Wage and the National Living Wages might work after 2020.