Ebene News – GB – National living wage extended to young workers

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The age threshold for the national living wage rises from 25 to 23 as rate increases on April 1

The National Living Wage (NLW) will rise on Thursday April 1 to £ 8.91, giving a real wage increase to millions of workers At the same time, the age threshold for the rate will drop from 25 to 23 years old, which means thousands of young workers will be entitled to a higher minimum wage These changes follow recommendations made to the government by the Low Wages Commission (LPC) and are a first step towards the NLW’s goal of achieving two-thirds of the median earnings of workers aged 21 and over by 2024.

In the March 3 budget, the government asked the LPC to monitor and assess the impact of these changes and recommend the rate that should apply from 2022 They asked the LPC to monitor the evolution of the labor market and whether the goal is achievable on time LPC to make recommendations to government on 2022 national minimum wage rates in October

This has been an extraordinary year for all of us, but especially for minimum wage workers, many of whom have worked throughout the pandemic in frontline roles or have worked in industries that have been the hardest. affected by lockdown measures

The increase in NLW this week is our first step towards the government’s goal of two-thirds of median earnings It’s an increase in real terms, meaning that an hour of work can buy more than it does could not last year, at the start of the pandemic The level of the new rate, however, also reflects the need to protect workers against job losses

Importantly, the NLW will now apply to workers aged 23 and over This is an important change which is strongly endorsed by the Commission Young people should be rewarded enough for their work We will seek to understand how youth wages and employment are affected as part of our review of a further reduction in the age of NLWs to 21

The LPC today released a short report that outlines how we will meet our mission and address our April 2022 rate recommendations, against the backdrop of economic uncertainty and the recovery from the pandemic The report charts path to goal of two-thirds median earnings Our current best estimate of the current NLW tariff in 2022 is £ 942, a 5 7% increase However, this is subject to more uncertainty than usual and is subject to change We will be posting an updated course this summer

lpc @ lowpaygov United Kingdom

020 7211 8132

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Ebene News – GB – National living wage extended to young workers

Source: https://www.gov.uk/government/news/national-living-wage-extended-to-younger-workers