UK: Minimum Wage Increased on October 1
Effective October 1, the UK’s national minimum wage has been increased to £6.70 for workers aged 21 and over (for workers aged 18 to 20 the rate is now £5.30, and for under 18s the rate is £3.87). However, most employers are focused on the introduction of the national ‘living wage’ which will be introduced in April 2016 which is designed to better reflect the true costs of living. The ‘living wage’ will replace the national minimum wage as the new mandatory standard for workers aged 25 and over and will raise the minimum amount paid to £7.20 per hour.
Some retailers have already taken a more aggressive stance and have introduced living wages ahead of the government scheme and aligned their rates to a voluntary scheme managed by the Living Wage Foundation, who have the determined that the minimum ‘living’ rate should be £9.15 for London and £7.85 for the rest of the UK.