National Living Wage Increase 2020
The current national living wage is set at £8.21 for those aged 25 and older. UK government-mandated minimum wage has not changed significantly in years – while cost of food, house prices and even room rental rates have skyrocketed, leaving the average worker with far less in the bank than they would have had ten years ago.
The minimum wage is capped at the rate for a 25-year-old. If you are aged 21-24, minimum wage is set to £7.70 an hour, and £6.15 for 18 to 20-year-olds. Those under 18 must legally earn £4.35 an hour, and apprentices make the lowest rate of £3.90.
Rates tend to be updated once a year, but historically they’ve never gone up by much. That’s why the new wage increase is such positive news – for the first time in quite a while, typical salaries could accurately reflect the real cost of living.
Of course, this same increase may only encourage the seller to up their own prices, since there will be so much more money floating around!
The national living wage going up is certainly an interesting development in recent news. Let’s just hope that inflation doesn’t cause everything we spend those wages on to rise by 6.2% too!
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