MILLIONS of workers will see their pay checks go up within days, giving them an increase of £1,600 a year.
The 10% hike will see the national living wage rise from £9.50 to £10.42 an hour from April 1.
Millions of workers will see a rise to their pay
The move will mean a payday rise for more than 2.5million Brits.
People on the national living wage will see their pay packets increase by 92p which means an additional £32.20 a week and £1,674.40 a year.
Chancellor Jeremy Hunt first announced the hike as part of last November’s Autumn Statement and the Treasury has confirmed that it will still go ahead following the Spring Budget.
He said: “This government introduced the national living wage which has been a giant step to eliminating low pay.
“So today I am accepting the recommendation of the Low Pay Commission to increase it next year by 9.7%.”
What is the National Living Wage?
The National Living Wage is the government’s minimum rate employers must pay employees aged 23 or over for each hour worked.
The difference between this and the Real Living Wage is that it’s decided by the government and is law, with the latter being voluntary.
It was introduced by Tony Blair‘s New Labour government in 1999 and was originally called the National Minimum Wage.
In 2011, a campaign group called the Living Wage Foundation was founded to persuade employers to voluntarily pay what it called the National Living Wage.
The National Living Wage was an independently-calculated estimate of the rate workers needed to cover their basic needs, and was higher than the National Minimum Wage.
What is the National Minimum Wage?
Those younger than 23 can be paid the national minimum wage instead, which is currently £9.18 for 21 to 22-year-olds and £6.83 for those aged 18 to 20.
These will rise to £10.18 and £7.49 an hour respectively from April too.
The rates for the national minimum wage for 2023/24 are as follows:
Those aged 21-22 will get at least £10.18 an hourWorkers aged 23 and over will get £10.42For 18 to 20-year-olds, the minimum wage will go up to £7.49 an hourUnder-18s will be entitled to a minimum of £5.28 an hourThe apprenticeship wage will go up to £5.28
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