Will the rate for the national living wage increase each year at the same time as the other bands of the national minimum wage?
The national living wage is the new statutory minimum wage rate that must be paid to workers aged 25 and over from 1 April 2016. The rate of the national living wage is initially set at £7.20 per hour. The Government aims for it to reach 60% of median earnings by 2020 (which on current forecasts would be around £8.60 per hour).
Traditionally, the other rates of the national minimum wage have increased each year on 1 October. The Government has now aligned the cycles for increases to the national living wage and the other national minimum wage rates so that all rates will be amended in April each year. This will take effect from April 2017, when the national living wage rate will increase to £7.50.
The rates of the national minimum wage for workers aged under 25 and the apprenticeship rate increased on 1 October 2016. The alignment of the cycles means that there will be a further increase to these rates in April 2017.