The recommended increases in the National Living Wage (NLW) and National Minimum Wage (NMW) rates will come into force from April 2021. The NLW, which currently only applies to workers aged 25 or over, will increase by 2.2% and will be extended to 23 and 24-year-olds for the first time.
Most employers saw a minimum wage requirement of $11.00 in 2020, but seasonal employers and employers with less than six employees are subject to a minimum wage rate of $10.30. Agricultural employers are also subject to the $10.30 rate. The minimum wage rate increased to $3.13 for tipped employees.
|Rate||Current Rates||From April 2020|
|Adults (25+) aka the National Living Wage||8.21||8.72|
|Adult (21 – 24)||7.70||8.20|
|Youth Development (18 – 20)||6.15||6.45|
|16 – 17 Year Old (under 18 but over school leaving age)||4.35||4.55|
REAL LIVING WAGE INCREASES TO £9.50 IN UK AND £10.85 IN LONDON AS COST OF LIVING RISES. The real Living Wage rates for 2020 /21 have been announced as £9.50 in the UK and £10.85 in London. This means: Over 250,000 people are set for a pay boost.
|State||2020 Minimum Wage||2021 Minimum Wage|
|Alabama||$7.25 (Federal, no state minimum )||$7.25 (Federal, no state minimum )|
Excluding Washington, D.C.’s $15 hourly minimum wage, California has the highest in the country at $14 per hour. Washington and Massachusetts are close behind, with $13.69 per hour and $13.50 per hour, respectively.
It has been announced that on the 1st April 2020 the minimum wage will increase by amounts ranging from 4.6% to 6.5%. It is estimated that approximately three million workers will see pay increases due to the new rates being introduced.
NLW and NMW rates from 1 April 2020
|Previous rate||Current rate from 1 April 2020|
|National Living Wage||£8.21||£8.72|
|21-24 Year Old Rate||£7.70||£8.20|
|18-20 Year Old Rate||£6.15||£6.45|
|16-17 Year Old Rate||£4.35||£4.55|
To determine your hourly wage, divide your annual salary by 2,080. If you make $75,000 a year, your hourly wage is $75,000/2080, or $36.06. If you work 37.5 hours a week, divide your annual salary by 1,950 (37.5 x 52).
As part of the Spending Review 2020, Chancellor of the Exchequer, Rishi Sunak, announced that, as per the Low Pay Commission’s (LPC) recommendations, which were made at the end of October 2020, the National Living Wage (NLW) and National Minimum Wage (NMW) rates will increase from April 1 2021.
Your hourly wage of 10 dollars would end up being about $20,800 per year in salary.
What is the difference between the living wage and the national minimum wage? The living wage is an informal benchmark, not a legally enforceable minimum level of pay, like the national minimum wage. The national minimum wage is set by the business secretary each year on the advice of the Low Pay Commission.