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National living wage

The UK government introduced a new minimum wage rate for all but the youngest workers, the national living wage, in 2016. Initially, it was for those aged 25 and over, but it is now for anyone aged 21 and over.

In 2024, the Labour government confirmed plans to apply the wage rate to all adults.

The national living wage (NLW) is compulsory and the Low Pay Commission (LPC) recommends future rises, maintaining it at two-thirds of median hourly earnings and, from 2025, taking into account the cost of living.

The national living wage is different to the Living Wage, a voluntary pay rate independently set by the Living Wage Foundation. The ‘real’ Living Wage is calculated according to the basic cost of living in the UK.


    • National living wage
    • Latest News
    • Minimum wage

    LPC finds 371,000 workers underpaid in April 2024

    by Kavitha Sivasubramaniam 19 Dec 2024
    by Kavitha Sivasubramaniam 19 Dec 2024

    A new report from the Low Pay Commission (LPC) estimates that around 371,000 people were underpaid in April 2024.

    • National living wage
    • Latest News
    • Inflation

    Inflation rises to 2.6% in November, employers cautious about pay

    by Jo Faragher 18 Dec 2024
    by Jo Faragher 18 Dec 2024

    The UK rate of inflation has hit its highest level in eight months, rising to 2.6% in the year to November.

    • National living wage
    • Latest News
    • Pay settlements

    Pay deals stuck at 4% in October

    by Jo Faragher 20 Nov 2024
    by Jo Faragher 20 Nov 2024

    UK pay rises remained stagnant in the third quarter of this year, plateauing at 4%, according to data from Brightmine.

    • National living wage
    • Business performance
    • Latest News

    More sectors at risk from hike in budget-related costs

    by Kavitha Sivasubramaniam 12 Nov 2024
    by Kavitha Sivasubramaniam 12 Nov 2024

    More sectors warn of the threat to business following the chancellor’s budget increase to employers’ costs.

    • National living wage
    • Latest News
    • Job creation and losses

    Budget uncertainty hits recruitment in October

    by Rob Moss 8 Nov 2024
    by Rob Moss 8 Nov 2024

    Uncertainty around Budget accelerates long-running negative trend in recruitment activity as businesses put hiring plans on hold.

    • National living wage
    • Business performance
    • Latest News

    BT faces costs of £100m due to NI and minimum wage changes

    by Kavitha Sivasubramaniam 7 Nov 2024
    by Kavitha Sivasubramaniam 7 Nov 2024

    BT faces additional costs of around £100 million following last week’s Budget announcement by the chancellor.

    • Sexual harassment
    • National living wage
    • Financial penalties

    Top 10 HR questions October 2024: National living wage

    by Brightmine 1 Nov 2024
    by Brightmine 1 Nov 2024

    Last month's most frequently asked HR questions included queries around the 'real' Living Wage and the national living wage.

    • National living wage
    • IR35
    • Latest News

    Budget 2024: Employers’ national insurance up to 15%

    by Jo Faragher 30 Oct 2024
    by Jo Faragher 30 Oct 2024

    Chancellor Rachel Reeves has confirmed there will be a rise in employers’ national insurance contributions to 15%, a lower figure...

    • National living wage
    • Latest News
    • Economics, government & business

    National living wage increase of 6.7% confirmed

    by Rob Moss 29 Oct 2024
    by Rob Moss 29 Oct 2024

    A 6.7% hike in the national living wage for 2025 has been confirmed ahead of the Budget, while the national minimum wage rises by 16.3%.

    • National living wage
    • Latest News
    • Living Wage

    Living Wage rate increases to £12.60 an hour

    by Jo Faragher 23 Oct 2024
    by Jo Faragher 23 Oct 2024

    Living Wage rate 2024-25: The rate recommended by the Living Wage Foundation has gone up to £12.60 across the UK, and £13.85 in London.

    • National living wage
    • Latest News
    • Pay & benefits

    More than 2m left with less than £10 a week after essentials

    by Jo Faragher 15 Oct 2024
    by Jo Faragher 15 Oct 2024

    More than 2m are left with less than £10 a week after spending on essentials, according to the Living Wage Foundation.

    • National living wage
    • Latest News
    • Living Wage

    Card Factory blames soaring wages for profits plunge

    by Kavitha Sivasubramaniam 24 Sep 2024
    by Kavitha Sivasubramaniam 24 Sep 2024

    Card Factory blames a slump in profits on its escalating costs, including a hike in national minimum wage rates.

    • National living wage
    • Latest News
    • Pay & benefits

    Low Pay Commission prepares to reduce the age-related pay gap

    by Kavitha Sivasubramaniam 5 Sep 2024
    by Kavitha Sivasubramaniam 5 Sep 2024

    The Low Pay Commission prepares to reduce the pay gap between 18-20-year-olds and those aged 21 and over as part of its new government remit.

    • National living wage
    • Employment law
    • Latest News

    Fair Work Agency: government could issue warnings before fines

    by Jo Faragher 2 Sep 2024
    by Jo Faragher 2 Sep 2024

    The government’s proposed Fair Work Agency could implement a warning system before going on to prosecute and fine companies that...

    • National living wage
    • Disability discrimination
    • Latest News

    Paralegal wins more than £100k in discrimination claim

    by Jo Faragher 28 Aug 2024
    by Jo Faragher 28 Aug 2024

    A paralegal has been awarded more than £100,000 in compensation after the firm she was working for blocked her dream to become a solicitor.

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Personnel Today
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