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Next Min Wage Increase
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Anyone know what the next minimum wage increase is going to be for the over 25
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The National Living Wage (which is what applies to those over 25, rather than the National Minimum Wage) and the NMW aren't due to rise until April of next year. The rates that came into effect in April of this year weren't announced until 31 December last year, so you've probably got over 4 months to wait before finding out what next year's figures will be.
However the Chancellor used this year's Budget statement, in March, to announce that the Low Pay Commission had been asked to make recommendations on the NLW which would bring it up to two thirds of median earnings by 2024. The median earnings for a full-time worker back in April 2019 (which is the most recent date available on the website of the Office of National Statistics) were £585 per week. Based upon that figure, the target earnings for a full-time worker on NLW by 2024 would need to be £390. As the ONS website also shows that the average number of hours per week worked by full-time employees in April 2019 was 39, that means that the apparent target figure for the NLW in 2024 must be one of £10 per hour.
As the current NLW is £8.72 per hour then, to stay on target (and assuming that the increases come in equal steps) the rates for each of the next 4 years would have to be as follows:
April 2021 . . . £9.04
April 2022 . . . £9.36
April 2023 . . . £9.68
April 2024 . . . £10.00
Of course the mathematical models used by the Low Pay Commission and the Government are far more complex than that but my suggested figures indicate roughly how the target of the NLW reaching two thirds of median earnings by 2024 might be achieved. (If median earnings have risen by 2024, then an equivalent percentage increase would need to be applied to my figures too).
However the Chancellor used this year's Budget statement, in March, to announce that the Low Pay Commission had been asked to make recommendations on the NLW which would bring it up to two thirds of median earnings by 2024. The median earnings for a full-time worker back in April 2019 (which is the most recent date available on the website of the Office of National Statistics) were £585 per week. Based upon that figure, the target earnings for a full-time worker on NLW by 2024 would need to be £390. As the ONS website also shows that the average number of hours per week worked by full-time employees in April 2019 was 39, that means that the apparent target figure for the NLW in 2024 must be one of £10 per hour.
As the current NLW is £8.72 per hour then, to stay on target (and assuming that the increases come in equal steps) the rates for each of the next 4 years would have to be as follows:
April 2021 . . . £9.04
April 2022 . . . £9.36
April 2023 . . . £9.68
April 2024 . . . £10.00
Of course the mathematical models used by the Low Pay Commission and the Government are far more complex than that but my suggested figures indicate roughly how the target of the NLW reaching two thirds of median earnings by 2024 might be achieved. (If median earnings have risen by 2024, then an equivalent percentage increase would need to be applied to my figures too).
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