The minimum wage set by the government, known as the National Living Wage, is increasing by more than £1 for the first time, providing a boost for 2.7 million low-paid workers.
The main wage rate is rising from £10.42 to £11.44 an hour and will apply to workers over 21 rather than over 23. Younger workers will also see a rise in the rates that apply to them. However, some businesses say the higher labour costs will make it harder for them to keep prices down.
The changes mean:A full-time adult worker paid the minimum wage will see a pay rise worth £1,800 a year
A 21-year-old, who moves from the lower minimum wage rate to the main rate, will get a £2,300 rise
The minimum wage for 18-20-year-olds will increase from £7.49 to £8.60 an hour
Apprentices will also get an above-inflation rise, with hourly pay going up by more than 20%, from £5.28 to £6.40 an hour. Samuel, who works at Grindsmith coffee house in Salford, is one of those who will benefit from the increase.
The 26-year-old says before the pay hike he was left with about £400 at the end of the month after rent and bills were paid, but felt he was being left “shorter and shorter” each time.
“Maybe for a month you’ll be like ‘oh, I’ve got money this month’ but next month will be a bit of a rough one,” Samuel says. The government accepted the recommendation, saying it meant the Conservatives’ target to “end low pay”, by lifting the minimum wage to two-thirds of average earnings, had now been met.
However, Samuel’s employer, Peter Gibson, the director and co-founder of Grindsmith, says businesses are under strain from the rise in wage costs. An increase for the lowest paid means he has to boost wages for other staff to maintain a differential, he says.
Source: BBC
In other news – Hailey Bieber puts Justin Bieber’s separation rumous to rest with Easter post
Hailey Bieber put bizarre rumours surrounding her marriage to Justin Bieber as she shared a glimpse inside her Easter celebrations with her husband.
Taking to Instagram stories, the beauty mogul shared images two images. One of them featured two chocolate eggs with Hailey and Justin’s name written on them. Read more
