National Minimum Wage vs National Living Wage rates

The term “National Living Wage” is specific to the United Kingdom, and it refers to the minimum wage rate set by the government.

In the UK, there are distinct rates for the National Living Wage (NLW) and the National Minimum Wage (NMW). These rates are periodically reviewed and adjusted. Here’s a detailed breakdown of the differences:

1. National Living Wage (NLW):
   • The National Living Wage is a statutory minimum wage rate introduced in the UK in April 2016.
   • It is applicable to workers aged 23 and older. Effective April 2024 the applicable age is 21 and over.
   • The rate is designed to ensure that individuals receive a wage that is sufficient for a basic standard of living.
   • The NLW rate is generally higher than the National Minimum Wage.
2. National Minimum Wage (NMW):
   • The National Minimum Wage is a set minimum wage rate for workers in the UK, and it is divided into different age categories.
   • As of my last update, the age categories for the NMW are:
     • Apprentice Rate (for apprentices aged under 19 or those aged 19 and over but in the first year of their apprenticeship).
     • Under 18 Rate.
     • 18-20 Rate.
     • 21-22 Rate.

Eligibility

• Minimum Age for National Minimum Wage:
  • Eligibility for the National Minimum Wage starts at school leaving age.
• Age Requirement for National Living Wage:
  • Individuals must be at least 23 years old to qualify for the National Living Wage.
  • The National Minimum Wage is applicable for workers aged 22 and under.
• Upcoming Change (From April 1, 2024):
  • Starting from April 1, 2024, the National Living Wage will apply to workers aged 21 and over.

Current Rates

These rates are for the National Living Wage (for those aged 23 and over) and the National Minimum Wage (for those of at least school leaving age). The rates change on 1 April every year.

	23 and over	21 to 22	18 to 20	Under 18	Apprentice
April 2023 (current rate)	£10.42	£10.18	£7.49	£5.28	£5.28

From 1 April 2024, workers aged 21 and over will be entitled to the National Living Wage.

	21 and over	18 to 20	Under 18	Apprentice
April 2024	£11.44	£8.60	£6.40	£6.40

Apprentices

Apprentices are entitled to the apprentice rate if they’re either:

• aged under 19
• aged 19 or over and in the first year of their apprenticeship

Previous rates

The following rates were for the National Living Wage and the National Minimum Wage from April 2017.

Rates from 1 April 2021

	23 and over	21 to 22	18 to 20	Under 18	Apprentice
April 2022 to March 2023	£9.50	£9.18	£6.83	£4.81	£4.81
April 2021 to March 2022	£8.91	£8.36	£6.56	£4.62	£4.30

Rates before 1 April 2021

Before 1 April 2021 the National Living Wage was for those aged 25 and over.

	25 and over	21 to 24	18 to 20	Under 18	Apprentice
April 2020 to March 2021	£8.72	£8.20	£6.45	£4.55	£4.15
April 2019 to March 2020	£8.21	£7.70	£6.15	£4.35	£3.90
April 2018 to March 2019	£7.83	£7.38	£5.90	£4.20	£3.70
April 2017 to March 2018	£7.50	£7.05	£5.60	£4.05	£3.50