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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
    • Zero hours
    • CIPD

    CIPD calls for Employment Rights Bill clarity

    by Kavitha Sivasubramaniam 6 Mar 2025
    by Kavitha Sivasubramaniam 6 Mar 2025

    The CIPD is urging the government to provide clarity for employers as new amendments to the Employment Rights Bill are unveiled.

    • National living wage
    • Latest News
    • Retail

    Lidl announces pay rise from March 2025

    by Zoe Wickens 11 Feb 2025
    by Zoe Wickens 11 Feb 2025

    Lidl is giving its 28,000 hourly-paid employees a pay rise from March 2025, ahead of the increase in the national living wage.

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

    M&S boss backs call to phase in employers’ NIC increase

    by Rob Moss 10 Feb 2025
    by Rob Moss 10 Feb 2025

    Marks and Spencer boss Stuart Machin repeats call on government to phase in increase to employers’ national insurance contributions (NICs).

    • Age discrimination
    • National living wage
    • Latest News

    Football club faces modern slavery claim

    by Rob Moss 7 Feb 2025
    by Rob Moss 7 Feb 2025

    Crawley Town FC, according to the Guardian, asked kitman to work 100 hours a week for no extra pay.

    • National living wage
    • Business performance
    • Latest News

    Employer tax hikes fuel jump in ‘distressed’ firms

    by Jo Faragher 24 Jan 2025
    by Jo Faragher 24 Jan 2025

    Concerns around an increase in employer taxes have contributed to a record jump in the number of UK businesses in financial distress.

    • National living wage
    • Latest News
    • Minimum wage

    Cost of employing low-wage staff to hit record high

    by Jo Faragher 3 Jan 2025
    by Jo Faragher 3 Jan 2025

    The cost of employing low-wage workers will hit a record high in 2025, according to analysis by the Centre for Policy Studies.

    • 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.

    • National living wage
    • Sexual harassment
    • 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%.

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