The National Living Wage (NLW) is the legal minimum hourly pay that employers must provide to workers aged 21 and over in the UK. It is designed to ensure that workers earn enough to meet the basic cost of living and is reviewed annually by the government.
How is it Different from the Minimum Wage?
The UK has two main wage standards:
- National Minimum Wage (NMW) – for those under 21 and apprentices.
- National Living Wage (NLW) – for workers aged 21 and above (as of April 2024).
Unlike the NMW, which varies by age group, the NLW applies a flat rate to eligible workers and reflects recommendations from the Low Pay Commission.
Current Rate (2024–2025)
As of April 2024, the NLW is £11.44 per hour for workers aged 21 and over. This figure is expected to rise in line with inflation and government targets.
Why It Matters
The National Living Wage aims to:
- Reduce in-work poverty.
- Support fair pay practices.
- Encourage economic participation across all sectors.
It is different from the Real Living Wage, a voluntary rate set by the Living Wage Foundation, which is often higher and based on actual living costs.
