In the UK, there isn’t one single “minimum wage.” Instead, there are different rates depending on your age and whether you’re an apprentice. These are known as the **National Minimum Wage (NMW)** and the **National Living Wage (NLW)**.
Here’s a breakdown of what they are and their current and upcoming worth:
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### What are the National Minimum Wage (NMW) and the National Living Wage (NLW)?
1. **National Living Wage (NLW):**
* This is the highest rate of minimum wage.
* It applies to workers aged **23 and over** currently.
* **Important Change:** From April 2024, the NLW will apply to workers aged **21 and over**.
2. **National Minimum Wage (NMW):**
* This applies to workers under the age of 23.
* There are different rates for different age bands:
* Age 21-22 (currently)
* Age 18-20
* Under 18 (school leaving age)
* There is also a specific rate for apprentices.
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### How Much Are They Worth?
The rates are typically updated every April. Below are the **current rates (effective from April 2023)** and the **upcoming rates (effective from April 2024)**, which have already been announced.
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#### 1. Current Rates (Effective from 1st April 2023)
* **National Living Wage (NLW)** (for workers aged 23 and over): **£10.42 per hour**
* **National Minimum Wage (NMW):**
* Age 21-22: **£10.18 per hour**
* Age 18-20: **£7.49 per hour**
* Under 18 (and above school leaving age): **£5.28 per hour**
* Apprentice (under 19, or 19+ and in first year of apprenticeship): **£5.28 per hour**
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#### 2. Upcoming Rates (Effective from 1st April 2024)
The government announced significant increases to these rates in Autumn 2023.
* **National Living Wage (NLW)** (for workers aged **21 and over**): **£11.44 per hour**
* *Note: The age threshold for NLW reduces from 23 to 21 from April 2024.*
* **National Minimum Wage (NMW):**
* Age 18-20: **£8.60 per hour**
* Under 18 (and above school leaving age): **£6.40 per hour**
* Apprentice (under 19, or 19+ and in first year of apprenticeship): **£6.40 per hour**
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### Key Points to Remember:
* **Annual Review:** The rates are reviewed annually by the Low Pay Commission and typically updated each April.
* **Apprenticeship Rate:** The apprentice rate applies to apprentices under 19, or those aged 19 or over but in the first year of their apprenticeship. If an apprentice is 19 or over and has completed the first year of their apprenticeship, they are entitled to the NMW rate for their age.
* **Real Living Wage:** It’s important not to confuse the **government’s National Living Wage** with the **Real Living Wage** (set by the Living Wage Foundation). The Real Living Wage is a voluntary rate that is higher than the government’s minimum, calculated based on the actual cost of living, and paid voluntarily by over 14,000 UK employers.
Always check the official government website (GOV.UK) for the most up-to-date and definitive information.
