The National Minimum Wage increase 2022

The National Living Wage will rise from April 1st 2022 providing an increase of 59 pence, or 6.6 per cent.

According to the government, employment is returning to pre-pandemic levels and businesses are advertising record numbers of vacancies. As the cost of living increases with people expected to pay more for rising fuel, energy and food costs Matthew Percival, director for people and skills at the Confederation of British Industry (CBI), said: "The good news is that the UK economy is continuing to create jobs.”.

The Bank of England has tried to combat accelerating price growth by increasing interest rates to 0.5%.

The NMW increases aim to support the wages and living standards of low-paid workers. Bryan Sanderson, Low Pay Commission Chair, said:

‘The rates we recommended will put money in the pockets of care-workers, food distributors and many other groups of the lowest-paid members of our society up and down the UK. Many of them have made a vital contribution during the last few difficult months.’

Low pay commission recommendations

The new rates are in line with recommendations from the Low Pay Commission and have been fully accepted by government.

Entitlement to the National Minimum Wage (NMW)

Most workers in the UK over compulsory school leaving age are legally entitled to be paid at least the NMW. All employers have to meet NMW if you are entitled to it:

  • if you are paid weekly or monthly, by cheque, in cash or in another way

  • if you work full time, part time or any other working pattern

  • if you work at your employer’s own premises or elsewhere

  • applicable to any size employer

  • applicable throughout the UK

Calculating the National Minimum Wage

The minimum amount per hour that most workers in the UK should get depends on their age and if they're an apprentice. NMW pay is calculated on gross pay (before tax and National Insurance have been taken off). Your average hourly pay is worked out over a period called the ‘pay reference period’. This is the period of time that you are actually paid for. A pay reference period can’t be longer than 31 days. Your pay reference period is one week if you are paid weekly or if you are paid monthly it is one month.

NMW per pay period

The NLW/NMW applies to each and every pay period. It is not permissible for higher earnings in one pay period to balance out earnings below the minimum wage in the next

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