national minimum wage 2018

More than 2.5 million workers will benefit from above inflation pay rises as a result of changes to the National Minimum Wage and the National Living Wage effective from 1 April 2018.

The number of people who will be directly affected by the increases sees an additional 500,000 workers now covered by the protection against low wages.

The increases for 21-24 and 18-20 year olds, 4.7% and 5.4% respectively, represent the largest increase in the minimum wage for youngsters for more than 10 years. The National Living Wage for those aged 25 and over will increase by 4.4%.

Minimum Wage Rate Previous Rate (hourly) Rate from 1 April 2018
National Living Wage £7.50 £7.83
21-24 Year Old Rate £7.05 £7.38
18-20 Year Old Rate £5.60 £5.90
16-17 Year Old Rate £4.05 £4.20
Apprentice Rate £3.50 £3.70
Accommodation offset £6.40 £7.00

Interesting figures from the Government show that with 40% of employees employed in the hair and beauty business that this is the sector where employees are most likely to be paid the minimum wage whereas the sectors employing the most people on the minimum wage are retail (475,000), hospitality (290,000 and cleaning and maintenance (275,000).


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