The new annual national minimum wage (NMW) and national living wage (NLW) increases take effect from 1 April 2022
The national living wage is now £9.50 per hour, representing an inflation busting 6.6% increase, which can only further fuel increases in the UK national inflation rates.
A worker over the age of 22, working 40 hours a week will from April 2022 have a gross annual salary of at least £19,000 per annum and indeed a worker aged 21 or 22 will earn £18,360 per annum for a 40 hour week.
The inflationary pressure then comes from other workers earning above these rates, pressing for similar pay rises. Not all businesses will be able to afford these increases and those that can will need to pass on the increases to customers and clients
In full, the increases from 1 April 2022 are:
- National living wage (23+) has increased by 6.6% from £8.91 to £9.50
- National minimum wage (21–22) has increased by 9.8% from £8.36 to £9.18
- National minimum wage (18–20) has increased by 4.1% from £6.56 to £6.83
- National minimum wage (under 18) has increased by 4.1% from £4.62 to £4.81
- Apprentice rate has increased 11.9% from £4.30 to £4.81
Could we be returning to an era of double digit 1980’s and 90’s inflation? Time will tell…