Both the minimum wage and the Real Living Wage will both increase, with minimum wage increases come into effect from April 1st, at the beginning of each financial year.
It was announced on November 16th that the Real Living Wage is getting a boost of 40p, increasing it to £9.90 an hour overall.
Here’s all you need to know about the National Minimum Wage and what to expect in 2022.
What is the Real Living Wage in Scotland?
Currently, the Real Living Wage in Scotland is £9.50 an hour, but it will increase up to £9.90 an hour.
At the moment, 2,400 employers in Scotland offer their staff RLW rates and the increase is expected to affect 52,000 Scottish workers across the country.
What is the difference between the Real Living Wage and Minimum Wage?
The minimum wage a worker should get depends on their age and if they're an apprentice.
The National Minimum Wage is the minimum pay per hour that almost all workers are entitled to, with different amount for different age brackets and roles.
In comparison, the Real Living Wage is higher than the National Minimum Wage and workers are only required to receive it if they're over 23.
What is the current National Minimum Wage?
It is compulsory for employers to pay the National Minimum Wage, but it can vary depending on the age of the employee.
Everyone over school leaving age should earn the minimum wage and those aged 23 and over get paid the National Living Wage.
The current hourly rate for the National Minimum Wage is £4.30 for apprentices, £4.62 for those aged under 18, and £6.56 for those aged between 18 and 20.
This rises to £8.36 for workers aged between 21 and 22, and £8.91 for people aged 23 and over.
Apprentices are entitled to the apprentice rate if they are aged under 19 or if they are older than 19 and in the first year of their apprenticeship.
They should receive the National Minimum Wage if the apprentice is both 19 and over and has completed the first year of their apprenticeship.
What is the minimum wage in Scotland?
The minimum wage is set by the UK government, making it the same across England, Scotland, Wales, and Northern Ireland.
So the Scottish minimum wage is set at the same rates as the rest of the UK and will increase at the same time and at the same rate.
When will the minimum wage go up?
The National Minimum Wage was last raised on April 1, 2021 and is not due to increase again this year.
This was also the first year that the National Living Wage was extended to 23 and 24-year-olds – before it was for those aged 25 and over.
Each year on April 1, the National Minimum Wage is adjusted by the UK government.
News came out on October 25th that the National Living Wage is set to rise from £8.91 per hour to £9.50 in the Budget, which will be announced next week.
In addition, the National Minimum Wage for young people aged 21-22 will rise from £8.36 to £9.18 an hour and the Apprentice Rate will rise from £4.30 to £4.81 an hour.