{"id":65921,"date":"2022-01-31T19:10:08","date_gmt":"2022-01-31T17:10:08","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=65921"},"modified":"2024-03-27T12:24:02","modified_gmt":"2024-03-27T10:24:02","slug":"new-uk-minimum-wage-2022","status":"publish","type":"post","link":"https:\/\/factorialhr.co.uk\/blog\/new-uk-minimum-wage-2022\/","title":{"rendered":"What is the New UK Minimum Wage in 2022?"},"content":{"rendered":"

Check the National minimum wage for 2023 here<\/a><\/h2>\n

The UK National Minimum Wage<\/strong> is the minimum pay per hour <\/span>a UK business can legally pay an employee from April 2022. The UK government review and establishes this new wage every year to ensure that workers receive economic compensation that covers basic living costs.\u00a0<\/span><\/p>\n

Keep reading to discover how to calculate the New Minimum Wage and explore how this can help you to recruit and retain talent:<\/span><\/p>\n

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  1. What is The National Living Wage?<\/a><\/li>\n
  2. What Is the National Minimum Wage in 2022?<\/a><\/li>\n
  3. The UK Minimum & Living Wage Rates in 2022<\/a><\/li>\n
  4. Who is entitled to Minimum Wage UK?<\/a><\/li>\n
  5. Workers Who Don\u2019t Qualify for the UK Minimum Wage 2022?<\/a><\/li>\n
  6. How is the National Minimum Wage Calculated:<\/a><\/li>\n
  7. Minimum Wage Rates in Ireland<\/a><\/li>\n
  8. What Is the Real Living Wage?<\/a><\/li>\n
  9. Benefits of a Higher Minimum Wage<\/a><\/li>\n
  10. How Does Minimum Wage Affect Human Resources?<\/a><\/li>\n
  11. Corporate Social Responsibility (CSR)<\/a><\/li>\n
  12. \u2705<\/span><\/span> Manage Employees\u2019 Payments\u00a0<\/a><\/strong><\/li>\n<\/ol>\n

    <\/a><\/p>\n

    What is The National Living Wage?<\/h2>\n

    The National Living Wage<\/strong> was introduced in 2016 and is also reviewed every year by the UK government. This wage scheme <\/span>is higher than the UK National Minimum Wage, and solely benefits workers aged 23 and over.\u00a0<\/span><\/p>\n

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     <\/p>\n

    What Is the National Minimum Wage in 2022?<\/strong><\/h2>\n

    Fortunately, t<\/span>he UK minimum wage is increasing from April 2022, bringing the pay of millions of workers up to \u00a39.18 an hour.<\/strong>\u00a0<\/span>All in all, it represents an increase of 6.6% compared to the current rates and affects UK workers aged 23 and over. Such updates define a yearly increase of \u00a31,074 per worker.\u00a0<\/span><\/p>\n

    \"Minimum
    \n    <\/a><\/p>\n

    The UK Minimum & Living Wage Rates in 2022<\/h2>\n

    Here are the UK 2022 NLW and NMW rates below:\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n
    Previous rate<\/th>\nRate from April 2022<\/th>\nIncrease<\/th>\n<\/tr>\n<\/thead>\n
    National living wage<\/td>\n\u00a38.91<\/td>\n\u00a39.50<\/td>\n6.6%<\/td>\n<\/tr>\n
    21-22-year-old rate<\/td>\n\u00a38.36<\/td>\n\u00a39.18<\/td>\n9.8%<\/td>\n<\/tr>\n
    18-20-year-old rate<\/td>\n\u00a36.56<\/td>\n\u00a36.83<\/td>\n4.1%<\/td>\n<\/tr>\n
    16-17-year-old rate<\/td>\n\u00a34.62<\/td>\n\u00a34.81<\/td>\n4.1%<\/td>\n<\/tr>\n
    Apprentice rate<\/td>\n\u00a34.30<\/td>\n\u00a34.81<\/td>\n11.9%<\/td>\n<\/tr>\n
    Accommodation offset<\/td>\n\u00a38.36<\/td>\n\u00a38.70<\/td>\n4.1%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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    \"minimum<\/span><\/p>\n

    Source: <\/span>National Minimum Wage and National Living Wage rates – GOV.UK (www.gov.uk)<\/span><\/a>
    \n    <\/a><\/p>\n

    Who is entitled to Minimum Wage UK?<\/h2>\n

    According to the Government, the national living wage applies to all UK workers,<\/a><\/span>\u00a0even if they are not paid by the hour. <\/span>On the other hand,\u00a0<\/span>apprentices<\/span> and workers over the age of 23 also qualify for the minimum living wage rates. <\/span>You can check the\u00a0<\/span>minimum wage for different work contracts<\/span><\/a> on the government website. Employees working part-time, casual labourers, trainees, and offshore workers are also eligible.\u00a0<\/span>
    \n    <\/a><\/p>\n

    Workers Who Don\u2019t Qualify for the UK Minimum Wage 2022?<\/h2>\n

    The minimum wage does not apply to workers who are self-employed, unpaid volunteers, company directors<\/strong> and family members<\/strong> who live in the home of the employer and do household chores.<\/span>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/span>
    \n    <\/a><\/p>\n

    How <\/strong>is <\/strong>the National Minimum Wage Calculated:<\/strong><\/h2>\n

    To calculate the right rates, you need to know that the <\/span>government<\/span> includes time spent:<\/span><\/p>\n