The so-called “National Living Wage” is really a re-brand and slight redesign of the minimum wage. It’s not a Living Wage by definition, because it’s not been calculated according to the costs of living – you can read more about the real Living Wage rate that we’re campaigning for here.
Technically it’s a compulsory minimum wage premium for all staff over 25 years of age.
“The government has instructed the Low Pay Commission that the minimum wage premium for over 25s should reach 60% of median earnings by 2020.
This would mean a rise to around £9 per hour by 2020, starting at £7.20 per hour from 1st April 2016.
The government rate is separate to the Living Wage rate calculated by the Living Wage Foundation.
The government rate is based on median earnings while the Living Wage Foundation rate is calculated according to the cost of living.
You can read our response to the 2015 budget here and a guide to the difference between the Living Wage and the minimum wage premium here.”