The United Kingdom to increase minimum wage for private sector employees

The British government recently announced that the national hourly minimum living wage for all workers age 23 and above will increase from GBP 8.91 to GBP 9.50 beginning 1 April 2022.

Key details

The hourly minimum wage increase of 6.6% more than doubles the current 3.1% cost of living increase.

This large increase, which was widely criticized by employers’ unions, aims to support the lowest earners in England. The minimum wage increase is likely to affect more small companies rather than big companies where pay rates are usually above the minimum wage.

Minimum wage for workers under age 23

Beginning 1 April 2022, the national hourly minimum living wage for workers under age 23 will also slightly increase as follows:

  • Workers between age 21 and 22: minimum hourly wage will increase from GBP 8.36 to GBP 9.18

  • Workers between age 18 and 20: minimum hourly wage will increase from GBP 6.56 to GBP 6.83

  • Workers under age 18: minimum hourly wage will increase from GBP 4.62 to GBP 4.81

In addition, apprentice rates also increased from GBP 4.30 to GBP 4.81 per hour.