Minimum wage: National Living Wage rules have changed – what does it mean for you?

Rishi Sunak grilled on National Living Wage

Make the most of your money by signing up to our newsletter for FREE now

Invalid email

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

To get the National Minimum Wage, a person must be at least school leaving age. This rate differs to the Government’s National Living Wage – a rate which applies to people who are above a certain age threshold.

Until recently, this threshold was 25, however Chancellor of the Exchequer Rishi Sunak announced changes at the 2021 Spring Budget.

He confirmed the threshold for National Living Wage would drop to the age of 23.

As the National Living Wage is higher than the National Minimum Wage rate, it means those aged 23 and 24 on the minimum wage rates will now get more money per hour.

These changes came into force in April this year.

READ MORE: Inheritance Tax bills skyrocket – where families are worst hit in UK

Minimum wage: Payslip and person with purse

Minimum wage: National Living Wage rules, regarding the age threshold, have changed (Image: GETTY)

How much is the National Living Wage?

Applying to those aged 23 and over only, the National Living Wage is now £8.91 per hour.

How much is the National Minimum Wage?

The National Minimum Wage for people aged 21 to 22 is now ££8.36 per hour.


The hourly rate for 18 to 20-year-olds stands at £6.56.

Under 18s, for those of at least school leaving age, are entitled to a minimum hourly rate of £4.62.

The apprentice rate is £4.30 per hour.

Apprentices are entitled to the apprentice rate if they’re either aged under 19, or 19 or older and in the first year of their apprenticeship.

Minimum wage: Person using calculator

Minimum wage rates have increased (Image: GETTY)

Apprentices who have completed the first year of their apprenticeship, and who are aged 19 or over, are entitled to the minimum wage for their age.

There is a minimum wage calculator to check whether the National Minimum Wage or National Living Wage is being paid.

The National Living Wage differs to the real Living Wage.

The latter of the two is a UK wage rate set out by the Living Wage Foundation.

Unlike the National Minimum Wage and the National Living Wage, it is not statutory.

Rather, it is voluntarily paid by more than 7,000 UK businesses.

The 2020/21 real Living Wage UK rate is £9.50 per hour.

It’s £10.85 per hour in London, and both rates apply to both those aged 18 and older.

Roy Walsh

Roy Walsh

Related post