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‘The National Living Wage’ and ‘The Living Wage’

From the 1st of April 2016 a new rate of pay will apply to workers aged 25 and over. This rate is called the “National Living Wage”.

So, what’s the difference between this and the “Living Wage” and what do you need to know?

  • Minimum Wage – The National Minimum Wage (including the "national living wage") is the legal minimum an employer can pay an employee. It is set by the UK Government.
  • The National Living Wage – This new rate is described as "essentially a new Minimum Wage for the over 25s" which starts on 1st April 2016
  • The Living Wage - A voluntary rate that employers can choose to commit to paying.

ScottishLivingWage.org shares their “fast facts” shown below on the difference between the Minimum Wage (including the National Living Wage”) and the Living Wage:

The Minimum Wage

(Including The National Living Wage)

The Living Wage (Voluntary)

  • The minimum pay per hour that workers are entitled to by law.
  • A range of different rates apply depending on the age of the worker.
  • Set by the UK Government.Based on an estimation of how much employers should pay.
  • A statutory obligation which employers must meet or face legal challenge.
  • A voluntary rate that employers can choose to commit to paying.
  • The rate is the same for all workers over the age of 18.
  • Set by the Living Wage Foundation.
  • Based on the cost of living and the “Minimum Income Standards” required for a basic, but adequate standard of living.
  • A movement and a demonstration of best practice and fair work.

Find out more about the differences and how the pay rates compare at: scottishlivingwage.org
For more information and FAQs relating to the new National Living Wage visit:
 

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