Millions of workers to get a £585 pay rise next month – are you one of them?
The National Living Wage will rise to £7.50 on April 1, giving workers a much needed wage boost
THE National Living Wage will rise from £7.20 to £7.50 on April 1, giving workers a much needed wage boost.
It means that those working a 37.5 hour week could earn an extra £585 a year.
Previously, employees working 37.5 hours a week on £7.20 an hour would have earned £270 a week. Now they will earn £281.25 a week, or £585 a year.
The wage increase was announced by chancellor Phillip Hammond during this month's Budget. The Government’s target is for the minimum wage to be £9 an hour by 2020.
But not all workers will benefit from the new rate, as it only applies to employees over the age of 25.
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Workers aged 21 to 24 will get £7.05 an hour, 18- to 20-year-olds will get £5.60 an hour, and under 18s will get £4.05 an hour. Apprentices will be paid £3.50 an hour.
Workers are entitled to the minimum wage if they're part-time or casual labourers, but the self-employed are not entitled to the minimum salary.
Many companies will offer to pay their employees more than £7.50 an hour, but this is the absolute minimum employers must now pay.
If you don't notice a change in your wage, speak to your employer. If you're still unsure, contact HMRC or Citizens Advice for guidance.
Personal Allowance increase
AS previously announced by the government in last year's Autumn Statement, workers will see their personal tax allowance rise to £11,500 from 6 April 2017, and the allowance will reach £12,500 by the 2019/20 tax year.
This means that workers can earn up to £11,500 in income before it is taxed.
Former chancellor George Osborne says this change means the typical basic-rate taxpayer will pay £1,000 less in tax each year than they did in 2010/11, when the personal allowance was £6,475.
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