The UK Government has announced that the National Living Wage (the minimum wage for over 25s) is to increase by 6.2% in April 2020.
This means that a 25-year-old working 40 hours a week will have a salary of approximately £18,136 a year, or £8.72 an hour.
This increase poses a challenge for us here at Check-a-Salary. Our salaries are calculated by taking the average advertised salaries over the last one to three years, depending on the job. This means that certain jobs will, therefore, appear to have a salary below the legal minimum. It is though common to see jobs advertised using the minimum wage for an 18 to 20-year-old, the figures of which are £6.45 an hour or £13,416 a year from April 2020.
This huge difference of approximately 35% between an 18-year-old and a 25-year-old will pose a challenge to employers. There are certain roles where 7 years of experience will mean the older employee can achieve more, other roles where experience, other than a few days training, isn't required, or if it is, isn't valued by the employment community.
| Year | 25 and over | 21 to 24 | 18 to 20 | Under 18 | Apprentice |
|---|---|---|---|---|---|
| April 2019 (current rate) | £8.21 | £7.70 | £6.15 | £4.35 | £3.90 |
| April 2020 | £8.72 | £8.20 | £6.45 | £4.55 | £4.15 |
Table of minimum pay from Gov.UK
Since 2012, there have been substantial increases to the minimum wage for an over 25, with an average yearly increase of 4.39%. Inflation, measured using the consumer price index (CPI) has averaged 1.62% between November 2012 and November 2019. This means that those at the lower end of the payscale have had inflation-beating pay rises. Increasing the minimum wage, in theory, is meant to raise wages for all, especially those earning under the national average. Average wages have gone up by 2.09% during the same period. This though implies that pushing up the minimum wage doesn't get completely reflected in salaries for all.
Below are a list of jobs which are typically paid at the National Minimum Wage which should expect an increase:
