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Government paper: National Living Wage and National Minimum Wage

The government has published its response to the Low Pay Commission’s (LPC’s) autumn 2018 recommendations on the National Living Wage (NLW) and National Minimum Wage (NMW) rates.

Government paper: National Living Wage and National Minimum Wage 1

Key findings

  • The LPC recommended that the NLW (for workers aged 25 and over) should increase from £7.83 to £8.21 an hour.
  • The other NMW rates were recommended to be set at the following levels: for 21–24-year-olds should increase from £7.38 to £7.70; for 18–20-year-olds should increase from £5.90 to £6.15; for 16–17-year-olds should increase from £4.20 to £4.35; and the apprentice rate (for apprentices aged under 19 or in the first year of their apprenticeship) should increase from £3.70 to £3.90.
  • The government accepts all of the LPC’s recommendations. In particular, that the NLW remains on path to reach 60 per cent of median earnings by 2020.
  • The NMW youth rates will be increased above the rate of inflation and of average earnings, following continued strength in these labour markets.

All increases are due to come into effect from April 2019, subject to Parliamentary approval. The government intends to lay implementing regulations before Parliament in due course.

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