Changes to The National Minimum Wage

Changes to The National Minimum Wage

31 March 2017

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Changes to the National Minimum Wage and the Living Wage are set to change on April 1, as they do every year in accordance with the Chancellor’s Budget. The new rates introduce a 4% pay rise for workers 25 and over. This means if you work full time on minimum wage, doing a 38-hour week, you will be £500 better off per year.

The personal allowance will also increase from £11,000 to £11,500 on April 6, meaning you will be able to earn more before being taxed.

Read the table below to see the new rates of pay:


                                    Current Rate                April 2017

Apprentice                        £3.40                            £3.50

Under 18                           £4.00                            £4.05

18 – 20                             £5.55                            £5.60

21 – 24                             £6.95                            £7.05

25 and over                       £7.20                            £7.50


The minimum wage is the minimum pay per hour workers are entitled to by law. The rate will depend on a person's age. Workers must be at least school leaving age to get the minimum wage and rates are reviewed by the government each year.

The living wage is only applicable to workers 25 and over, it is the same as the minimum wage but is only geared to people within this age bracket. It was launched in 2015 under the former Chancellor George Osborne and it was rolled out in April 2016.

The living wage represents the government's aim of raising the wages of those aged 25 and to over £9 an hour by 2020.



Written By Mary Palmer


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