Around two million of the UK’s lowest-paid workers will get a pay rise from Thursday as the minimum wage goes up.

The National Living Wage will rise 2.2% to £8.91, the equivalent of over £345 a year for a full-time employee.

It will also be given to 23 and 24-year-olds for the first time, not just those aged 25 and over.

Statutory rates for apprentices and those aged 18-22 will also rise, along with the voluntary “Real Living Wage”.

However, hundreds of thousands of low paid workers on furlough will see no uplift at all after they were excluded.

Minimum wage rises for two million workers

Around two million of the UK’s lowest-paid workers will get a pay rise from Thursday as the minimum wage goes up. The National Living Wage – previously for those over 25 – will rise by 2.2% to £8.91, the equivalent of more than £345 a year for a full-time employee.

In 2020, the national minimum wage for adults over the age of 25 in the United Kingdom was 8.72 British pounds an hour. This marked an increase of 1.62 British pounds since 2016, when the minimum wage for this age group was created. As of 2020, there are five minimum wage categories, four of which are based on age and one for apprentice workers. Workers under the age of 18 for example, had a minimum wage of 4.55 pounds an hour, with this increasing to 6.45 pounds for those aged 18 to 20, and then 8.2 pounds for those aged between 21 and 24. When the minimum wage was first introduced in 1999, there were just two age categories; 18 to 21, and 22 and over.

 

The median hourly earnings for full-time employees in the United Kingdom has increased by almost eight British pounds between 1996 and 2020, reaching 15.6 pounds in that year. This has occurred due to small incremental increases in every year, with the largest such rise occurring between 2007 and 2008 at 0.52 British pounds.

Minimum and living wage in the UK

In the United Kingdom, employers are expected to pay their employees a minimum wage that is determined by how old they are. Under 18s for example, had a minimum wage of 4.35 British pounds in 2019, (280506), with the figure increasing to 6.15 pounds for 18 to 20 year olds and 7.70 pounds for 21 to 24 year olds. Employees over the age of 24 earn the National Living Wage, which was 8.65 pounds as of April 2020.

Luxembourgers highest earners in Europe

Luxembourg had the highest average annual wage in the Europe in 2019 at almost 70 thousand U.S dollars. This was followed by Iceland at 68 thousand, Denmark at 57 thousand and the Netherlands at 56.5 thousand U.S dollars. The United Kingdom’s average annual wage amounted to around 47.2 thousand U.S dollars in the same year.