Living Wage, Minimum Wage? What’s the Difference?
In 2016, the National Living Wage was simply a renaming of the National Minimum Wage for over 25s by the government, and not actually linked to the cost of living.
What is the National Minimum Wage?
The National Minimum Wage (NMW) in the UK is the minimum pay per hour most workers under the age of 23 are entitled to by law.
It’s set annually by the Government, based on recommendations by an independent body known as the Low Pay Commission.
The NMW is applicable to every person over school leaving age, regardless of their position in the company. There are, however, a few exceptions where the NMW doesn’t apply, including:
- Self-employed people running their own business
- Company directors
- Volunteers or voluntary workers
| Current Rate | Rate from April 2023 | |
| 21–22-year-olds: | £9.18 | £10.18 |
| 18-20-year-olds | £6.83 | £7.49 |
| 16-17-year-olds | £4.81 | £5.28 |
What is the National Living Wage?
The National Living Wage (NLW) is the minimum pay per hour most workers aged 23 and over are entitled to by law.
| Current Rate | Rate from April 2023 | |
| National Living Wage | £9.50 | £10.42 |
For further information, please visit .GOV : National Minimum Wage Rates