Is the minimum wage going up in 2018? How much the National UK living wage will rise for millions of workers on 1 April - The Mirror

The Government has announced a huge change for workers in Britain - this is what you need to know

Last year, the Chancellor confirmed plans to increase the National Living Wage to £7.83 an hour on 1 April 2018.

This is the rate paid to over-25-year-old workers - it currently stands at £7.50.

Philip Hammond, who made the announcement during his Budget 2017 speech, said workers will benefit from an increase of 4.7% on the week of the new tax year.

This, he added would leave full time workers on basic pay as much as £600 better off a year.

That's equivalent to £50 a month - or 33p extra an hour. The minimum wage for those aged 16-24 will also rise - with pay for apprentices going up by 20p an hour. We've got a full breakdown of what rates will apply to you below.

Hammond's increase in the minimum wage is tied to a long-standing Tory pledge to deliver a rate of £9-an-hour for over 25s by 2025.

However, this is still below the Living Wage - a non-Government organisation that sets its own hourly rates, based on inflation - the measurement of how much prices have risen year-on-year.

Rachel Farr, senior employment lawyer at international law firm Taylor Wessing, said: "This increase will apply to all workers, including those in the gig economy such as Uber drivers. It will also apply to holiday and auto-enrolment pension calculations.

"But the National Living Wage remains below the real living wage calculated on a basket of goods and services, which stands at £10.20 per hour in London and £8.75 per hour elsewhere in the U.K."

In his speech, Hammond also announced an increase to the Personal Allowance from £11,500 to £11,850 on 1 April - which marks the end of the annual tax year.

This is the amount you can earn a year tax-free. The rise means you'll be able to earn up to £350 more a year without having to pay income tax - anyone above the threshold will save an estimated £70 a year.

What is the National Living Wage?

The Government’s National Living Wage became law on 1 April 2016 under ex-Tory Chancellor George Osborne.

The rules state that if you're working and aged 25 or above (and not in the first year of an apprenticeship), your hourly rate must be at least £7.50 - or £7.83 from April 2018.

Find out if you are eligible for the National Living Wage by using this handy calculator.

What is the 'Minimum Wage'?

The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rate depends largely on a worker's age and if they are an apprentice. If you're above 25, you qualify for the National Living Wage instead.

Both rates are a legal requirement, and failing to meet them could result in the employer being fined and even featured in the annual list of shame.

How much is the Minimum Wage going up?

On 1 April, the Minimum Wage is going up for millions of people. You can see a full breakdown below:

The increase, according to the Low Pay Commission (the body that sets the rates), will be the largest increase in a decade for 18-20 and 21-24 year olds, with a rise of 4.7% and 5.4% respectively.

The new rates, it claims, will boost the earnings of between 260,000 and 360,000 young workers directly because a) increases lead to ‘spillover’ effects further up the pay distribution and b) some young workers may also benefit from increases in the National Living Wage.

Commenting on the analysis, LPC Chair Bryan Sanderson said: "The LPC is pleased that the Government has accepted our recommendations to increase the NMW rates for young people. Many thousands will benefit directly and thousands more will benefit from the increases to the NLW.

"If economic conditions, particularly the labour market for younger workers, remain positive or improve then there will be grounds for further increases in NMW rates for younger workers in the future.”

Bosses are currently legally required to pay workers the following rates:

• Aged 21-24? Your current rate is £7.05, however this will rise to £7.38 on 1 April 2018.
• Aged 18-20? Your current rate is £5.60, however this will rise to £5.90 on 1 April 2018.
• Aged below-18? Your current rate is £4.04, however this will rise to £4.20 on 1 April 2018.
• Apprentice? Your current rate is £3.50, however this will rise to £3.70 on 1 April 2018.

There are a few rules to these rates:

• Apprentices are entitled to the apprentice rate if they’re either a) aged 19 or under or b) aged 19 or over and are in their first year of apprentiship.
• To qualify for the minimum wage, you must be at school leaving age (16 years or older).

What's the difference between the National Living Wage and Living Wage

The 'National Living Wage' and the 'Minimum Wage' are both set by the government and all employers must comply.

However the 'Living Wage' is a completely separate entity set up by the Living Wage Foundation. It's also reviewed annually.

The latter is not a legal requirement, but more what campaigners believe workers should be earning (factoring in inflation and so on). Many employers - such as supermarkets - have chosen it in favour of it over the government's guidelines and therefore pay their workers more.

Currently the Living Wage stands at £8.75 an hour in the UK, or £10.20 if you live in London. The rates apply to all those aged 18 or over. Here is a full list of the employers that pay it.

Remember: Always read your pay slip

You are entitled to a payslip and should ask your boss if you don’t receive one automatically. Reading it will help you see how much you are earning and how much you are taxed. The Money Advice Service has a guide to help you decode it.

There are a number of different ways you could be paid. If you’re paid by the hour, this should include travelling between different places of work - you can find out the full rules here. If you receive an annual salary, you can calculate your pay per hour. Even if you are paid for a specific piece of work, there is a fair hourly rate - work it out here.

If you work in a restaurant, your boss should not pay you out of your tips. The Mirror 's Fair Tips campaign helped secure a law protecting workers back in 2008.

I think I'm being unfairly paid - what should I do?

If you believe you're being underpaid, you should seek advice on the matter as soon as possible. You can find out what your entitlement is using the Advisory, Conciliation and Arbitration Service's [Acas] Helpline Online tool.

Acas is a free body that provides information and advice to employers and employees on employment law.

If you find you are in fact being unfairly paid, it is advised that you talk to your employer first, and try to resolve the issue.

If this doesn't work, you are within your rights to file a formal grievance to your employer.

Alternatively, Acas says a worker can make a complaint to HMRC who will investigate it for you.

If HMRC finds that an employer has failed to keep up with the minimum wage, they can send a notice of arrears plus a penalty for not paying the correct rate of pay to the worker.

The maximum fine for non-payment will be £20,000 per worker. However, employers who fail to pay could be banned from being a company director for up to 15 years.

If you want further advice, call the government’s Pay and Work Rights Helpline on 0800 917 2368 . The service is free and confidential.

Alternatively, try approaching the Citizens Advice Bureau [CAB]. Their advisers can assist you with a range of money and legal matters for free.