You may hear people talking about the National Minimum Wage, the National Living Wage, or the real Living Wage. But you may not know what this means or what the difference is between the three. In this article we'll help you understand the detail.
National Minimum Wage
The National Minimum Wage is the minimum pay per hour almost all workers are entitled to. It was first introduced in July 1998, with the first rates being set in April 1999 (£3.60 per hour) and has steadily increased since. National Living Wage replaced the National Minimum Wage for workers over the age of 22 in 2016.
Today, the National Minimum Wage is payable for workers aged 22 and under, and apprentices, and the rates vary by age. You can find the current rates on the Government website.
National Living Wage
The National Living Wage replaced the National Minimum Wage for workers over the age of 22 in 2016. It was initially set at the rate of £7.20 per hour which was a 50p increase from the National Minimum Wage rate at the time. From April 2023, the rate will be £10.42 per hour for workers aged of 23 or over.
You can find the current rates on the Government website.
Real Living Wage
The Real Living Wage is the only UK wage rate that is voluntarily paid by over 11,000 UK businesses who believe their staff deserve a wage which meets everyday needs - like the weekly shop, or a surprise trip to the dentist. It started as a campaign by Citizens UK in 2001 as a way to ensure that everyone can earn a Real Living Wage that meets the true cost of living and not just the Government minimum. The Real Living Wage rates are higher because they are independently calculated based on what people need to get by. That's why we encourage all employers that can afford to do so to ensure their employees earn a wage that meets the costs of living, not just the government minimum.
The table below shows the rates set on the 22nd September 2022 and compares the real Living Wage against the National Minimum and Nation Living Wages.
Accord is proud to be a real Living Wage employer and thanks to our efforts, Lloyds Banking Group and TSB joined the real Living Wage movement covering thousands of workers. We set an example to employers in the financial sector by signing up to the UK Living Wage Foundation in May 2015.