A Guide To Minimum Wage In The Uk

How The Minimum Wage Works

The minimum wage in the UK has steadily increased in recent years, at an annual rate of between 68 pence per hour and 95 pence per hour since 2009. The wage is calculated at an hourly rate but applies to all types of work in the UK, even if the employee is not paid per hour (including payments per project). In this article I’ll explain how the minimum wage works and what the current rates are (as of July 2017).

I'll also answer frequently asked questions on the topic and provide some useful links to further reading, The London NET (thelondonnet.co.uk). The UK minimum wage is intended to ensure that all workers receive a fair wage. However, some argue that it has not risen as rapidly as inflation over the past few years and remains below a “living wage”. This article explores how the minimum wage works and the factors that influence the amount you will be paid. It also covers some of the common myths about the UK national minimum wage.

London Living Wage Versus Minimum Wage

The latest London living wage (NLW) increase was welcomed by many of the UKs largest businesses, including the Mayor of London Boris Johnson. Johnson commented that its great to see the growing number of employers joining us in doing more for their staff. As a result of the NLW, hundreds of thousands of Londoners are likely to receive pay rises in November. But what is the NLW and how is it calculated? How are lower paid workers supposed to cope with rent increases if their wages remain static? And how effective are these publicly-advertised minimum wages?.

As of April 1st 2014, the London living wage was set at £9. 15, compared to £6. 50 for the national minimum wage. The capital also has the highest regional living wage in the country – at 70p more per hour than any other area – at a rate of £8. 80, which is set to climb to £9. 15 next year too. In addition, Londoners aged over 25 and employees aged over 21 both earn more than employees in other areas; residents are paid £9.

45 per hour compared to the others at £8. 80 and £7. 65 respectively. The London living wage is still stuck at £8. 80 an hour, but the minimum wage for the rest of the UK is £6. 50. The problem with the London living wage not being high enough is that it is calculated based on how much you need to make to meet your needs and afford a ‘living standard’ in London. It works out at £16,105 a year.

But with this calculation, if you live alone and have no dependents, you aren’t covered for any accommodation costs or childcare. London’s higher cost of living, compared to most of the rest of the UK, means that it needs higher wages. The NLW in London is currently £9. 40 an hour, above the national minimum wage of £6. 50 an hour. This means that a Living wage in London is £10. 55 an hour. In July 2013, the government announced that it would not be introducing a British Living Wage (BLW) but instead would only enforce the current rate of NLW.

A spokesperson for UK Uncut said. The NLW is £9. 15 an hour in London and £8. 30 an hour elsewhere, from April 1st 2019. That's 56p higher than the UKs national minimum wage of £8. 21 for workers aged over 25. Here is a list of the current minimum wage rates in the UK for 2017/18, the apparent gender pay gap and how to claim if you have been illegally underpaid. London City airport is actually the closest airport to London’s city centre.

Minimum Wage Calculator

The minimum wage calculator allows you to calculate the national minimum wage for hourly, weekly and monthly workers. The website works by taking your gross pay and deducting any set deductions, which are different for each employee. For example, if you pay tax at source itll reduce your taxable income. If you receive a retention bonus or commission then your calculator will deduct this too. To find our whether youre being paid the minimum wage, enter your hourly rate into the calculator.

The tool will calculate how many hours you need to work to make the minimum wage, and how much holiday pay your employer should be giving you. If your overtime isnt calculated on top of your salary, then it shouldnt be counted toward holiday pay. The minimum wage calculator is provided by the UK Government. It uses the current National Minimum Wage (NMW) rates and lets you enter how much you would like to earn per hour, so it can work out how much that amounts to over a week or month.

With little or no notice, in April 2016 the National Living Wage rose to £7. 20 an hour for workers aged 25 and over. Its likely that, as it takes effect, your hourly rate will have dropped below this new level. To work out your hourly rate, you should first know your annual salary. The calculator then gives you a choice of working out either your weekly or monthly rate. The take-home pay calculator on this page will help you work out what your new weekly wage will be, once the new minimum wage rate comes into effect.

Minimum Wage For Expats

There are a number of countries in Europe where minimum wage laws do not apply to expats (some to citizens and expats and some just to citizens). However, you should confirm this situation with the host countrys home office as it does change over time. As an example, Spain had exemptions for foreign workers until 2011 when a new law introduced a minimum monthly wage of 645€ ($795, £506) _Go To Website_ Adhere to the following regulations and you will almost certainly never have to worry about paying your foreign worker less that the set minimum: No such regulations apply in Bulgaria Minimum wage applies but doesnt change Minimum wage applies in Cyprus, but excludes those people who live in retirement villages (residence visa) .

If you want to become an expat in the UK and know for sure that you will be staying there for over one year, then the truth is that you are entitled to minimum wage regardless of your immigration status. This means that even if you are on a visa which does not permit you to work but still intend to do so in the future, you can still claim minimum wage or more if youre willing to sue if found out.

You may have come across job adverts that offer very low pay, perhaps even as low as 30 or 40 pounds an hour. That may sound like a lot to some people, but when you work out the number of hours per day this equates to, it’s not even enough to make minimum wage. Minimum wage for expats. If you're an expat in the UK, you are also entitled to be paid the UK national minimum wage or "living wage", plus enjoy the same rights as UK citizens in terms of paid annual leave and sick pay too.

Minimum wage for expats. So, how much is that per hour? This article will explain how UK national minimum wage rates are calculated and tell you how you can check if you're receiving the right pay for your job. Youre probably wondering how much youre going to get paid, and if there are any conditions attached to your minimum wage entitlement as an expat. Let me give you a step by step breakdown of what to expect.

Uk Minimum Wage And Living Wage 201819

On the 1st of April 2018, the UK national living wage was introduced. This is a new mand way to calculate the minimum wage.   The living wage figure, which is reviewed yearly due to changes in inflation, varies from region to region. Currently, the living wage (201819) for those over 25 in the South East of England is 8. 45 and will rise to 8. 75 in April 2019. As well as presenting the current national minimum wage for employees aged 25 or over, this calculator also presents the new living wage rate for the employee’s local area and compares it to their current pay.

For full information on national minimum wages visit gov. uk and for information on regional rates visit paying rates. The Living Wage Foundation started in 2012 and the voluntary rate is calculated every year. This rate is updated annually in April and it has recently been announced that the living wage will increase from £8. 75 to £9. 00 in April 2019. The UK living wage is reviewed annually and varies depending on the employees age.

The UK national living wage is set at 7. 38 an hour for employees aged 25 or over which will increase to 7. 83 in April 2019. The minimum rates are determined by the government each year, based on the cost of living and recommendations from the independent Low Pay Commission. Like many countries, the UK has several minimum wage rates. The rates differ depending on the age of the employee. However, there is a lower rate for those aged 18-21.

This minimum wage is 5. 90 per hour, and any employer breaching this is subject to penalties. If the recipient has to be 21 years or over, any payments made must be at least 105% of the National Minimum Wage (or Living Wage in Northern Ireland). These rates are reviewed on an annual basis. If you are over 25, the national minimum wage is 8. 21 per hour. If you are someone under the age of 25, then the rate is different.

Uk National Living Wage

The National Living Wage has two primary goals: first, to raise the wages of low-paid workers; second, to progressively increase the minimum wage to 60% of the median (middle) earnings for full-time workers by 2020. A third goal is to slowly eradicate working poverty in the UK. The National Living Wage is compulsory for all employers unless they are a small business with fewer than 25 employees. The living wage is a campaign originally started by the Citizens UK charity that aims to help tackle low pay in the UK.

It has been adopted as a policy by the Conservative-Liberal Democrat coalition government, and is now set by the Living Wage Foundation at £7. 83 per hour in London (but lower elsewhere). This new rate applies to employees aged 25 years or more, and those who receive tips. The government introduced the NLW because they wanted to ensure living standards kept pace with rising costs. This means that the NLW is not as high as the legal minimum wage in the UK (currently 7.

83). It is also lower than many of the voluntary living wage levels agreed by employers in some areas of the UK (these are often higher than £10). The concept of a living wage is an old one. However, the introduction of a national living wage in the UK came in April 2016 when George Osborne (then Chancellor of the Exchequer) increased the NMW (national minimum wage) for workers over the age of 25 (likely to be increasing again on 1st April 2018 to £7.

83 per hour). The number of workers aged 25 and over whose hourly wage is £7. 83 or more compared with the number who were paid £7. 83 or less in April 2014 and 2017, 2016 and 2017, 2015 and 2016 and 2014 and 2016 (not seasonally adjusted) is shown in the following chart. The national living wage was introduced in April 1, 2016, requiring employers to pay 25 and older staff a higher wage rate than the minimum.

What To Do If You Earn Less Than The Minimum Wage

UK’s government-published Resolution Foundation calculated that a care worker would need to work 33 hours a week, or 48 weeks a year, in order to earn at least the UK minimum wage. Other jobs with few paid holiday and sick days, such as apprentice chefs, would also require working long hours in order to earn the amount required. What to do if you earn less than the minimum wage? Well, it depends on two factors.

The first is whether or not you are an employee or a contractor. This is the most important factor, because if you are an employee, then you are entitled to the National Minimum Wage (NMW) and there is little you can do about it. Whether your a university graduate or entering the world of work for the very first time, the minimum wage can be a daunting issue to think about. If you come from a low income family or are living on benefits, the idea of earning less than the legal minimum can be quite scary.

The UK’s National Living Wage (NLW) rates are reviewed annually but not every worker will receive the rise: up until 1 April 2018, workers aged 25 and over could still be paid less than the £7. 83 an hour required by law for anyone over 21. Minimum wage is a hot topic in the UK and workers should be paid fairly. If you feel you are earning less than the UK minimum wage, here are some things you can do about it.

Laura Grace

Laura Grace

Main Contributor and Editor of The London NET