Chancellor Jeremy Hunt decided to raise the minimum wage for workers over the age of 23; However, the new rate will also be extended to 21 and 22 year olds for the first time
In a major development, the UK has decided to raise the minimum wage, officially known as the National Living Wage, by almost a pound or 9.8% to £11.44 an hour from April next year. BBC Reported – one of the largest increases as a share of average earnings in any advanced country.
The rate is currently £10.42 an hour for workers over the age of 23, the new rate will also apply to 21 and 22 year olds for the first time, the decision has been taken by Chancellor Jeremy Hunt.
Workers will get a substantial boost as a result of this policy change. A full-time employee aged 23 can expect a rise of £1,800 a year, while a 21-year-old could see an increase of effectively £2,300 per year.
Chancellor Hunt previously hinted at this pay rise during the Conservative Party conference in October, saying that the minimum wage was on track to surpass £11 in April.
The confirmed increase represents a 9.8% increase for those over the age of 23 compared to the previous year, and a significant 12.4% increase for workers aged between 22 and 21. Currently set at £10.18 an hour, the minimum wage for individuals aged 21-22 will see a substantial increase. increase.
Additionally, the national minimum wage for 18-20 year olds will increase from £7.49 to £8.60 an hour, benefiting a total of 2.7 million low paid workers. Apprentices have not been left out either, with hourly wages rising by more than 20%, from £5.28 to £6.40.
Chancellor Hunt fully accepted the Low Pay Commission’s proposals.
The Commission advises the government on the minimum wage, and Hunt confirmed that the Conservatives’ goal of “eliminating low pay” by raising the living wage to two-thirds of the average earnings measure has been achieved.
“The National Living Wage has helped halve the number of low-paid people since 2010, ensuring that work will always pay,” Hunt said.
However, concerns have been raised in some industries, with similar increases to last year leading retail and hospitality businesses to express concern over higher wage bills.