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Employment law for employers & Employment law for employees

National Living Wage to increase by 6.6% to £9.50 an hour

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The government announced today that the National Living Wage, the minimum hourly wage employers must pay all those aged 23 and over, will rise from £8.91 to £9.50.

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25 October 2021

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Daniel Zona

Associate

Talk to Daniel about Employment law for employers & Employment law for employees

This is an increase of 6.6%, nearly double the current cost of living increase. The National Minimum Wage for 18 – 22 year olds, under-18s and apprentices will also be rising. The changes will take effect from 01 April 2022.

Those industries with higher proportions of workers on the National Living Wage and National Minimum Wage were also industries which suffered most during COVID-19 and the economic shutdown, such as retail and hospitality. Workers who have spent most of the last 18 months receiving only 80% of their usual wages as furlough pay, will no doubt welcome this anticipated increase in their paypacket.

With the country facing a labour shortage in many sectors, there seems to be a general upwards pressure on wages. However with rising inflation and fears over increased energy prices, it is uncertain how much of a net increase workers will see.

25 October 2021

Authors

Daniel Zona

Associate

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Daniel Zona

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