National living wage

From 1 April 2016, the UK Government is introducing a new minimum wage rate, the “national living wage”, cuurrently £7.50 per hour for people aged 25 and over.

The national living wage (NLW) will be compulsory and the Low Pay Commission (LPC) will recommend future rises, with the Government aiming for it to reach 60% of median hourly earnings by 2020.

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

Costa Coffee said it expected to increase prices to counter cost of the NLW. Photo: Jacob Carter/REX Shutterstock

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