UK’s new minimum wage sets millions of workers up for pay rise

Millions of workers throughout the United Kingdom are set to receive a wage increase starting Monday as the minimum wage is slated for an uptick.

The minimum wage, also known as the National Living Wage (NLW), will rise from £10.42 ($13.14) to £11.44 ($14.43) per hour. Effective April 1, this adjustment applies to individuals aged 21 and above, instead of the previous threshold of 23.

Younger employees will also witness a bump in their wage rates.

Although the new NLW marks a 9.8 percent increase from prior levels, representing the most significant single increase since 2001, some workers argue it remains inadequate.

On the other hand, some businesses express concerns that heightened labor costs will pose challenges in maintaining competitive pricing.

The NLW boost, equating to £1,800 ($2,271) annually for full-time employees, is expected to benefit approximately 2.7 million people, according to estimates from the Department for Business and Trade.

This initiative aligns with a 2019 Conservative Party commitment to increase the NLW to two-thirds of the average earnings.

The independent Low Pay Commission, tasked with advising government officials on minimum wage matters, issues NLW recommendations annually. The current increase signifies a complete adoption of last year’s proposal.