With the recent announcement by Chancellor Jeremy Hunt that the National Minimum Wage would be rising in 2024, many people across Scotland may be curious to know how this will affect them.
He announced that in April 2024, the Minimum Wage would rise to £11.44 an hour for those aged over 21.
With these changes set to be implemented, here is everything you need to know in Scotland.
What are the National Minimum and Living Wages in Scotland?
The National Living Wage is set to rise to £11.44 from April 2024.
— HM Treasury (@hmtreasury) November 21, 2023
The new rate will also be extended to 21 & 22 year olds for the first time.
This is a pay boost to millions, worth over £1,800 a year for a full time worker. pic.twitter.com/Hr8rP3iSfn
The National Minimum Wage is the same in Scotland as it is in other parts of the UK with this being the legal minimum workers can be paid.
This differs between age groups with 16-17-year-olds being paid £6.40 an hour under the new rate, a rise of £1.12 (21.2%).
18-20-year-olds will also enjoy an hourly pay of £8.60, a rise of £1.11 (14.8%).
The National Living Wage (paid to those aged 21 and over) will rise by £1.02 to £11.44, representing a 9.8% increase.
This Living Wage has been extended to those aged 21 and 22.
Is the National Minimum Wage before or after tax?
The National Minimum Wage is the pay you will receive before the deduction of things like tax, National Insurance and pension contributions.
This also does not include other costs such as those incurred from your work for which you have not been reimbursed yet.
The NEW Living Wage rates for 2023/24 are out! 🎉
— Living Wage Foundation (@LivingWageUK) October 24, 2023
Both our #LivingWage rates have risen: £12 (UK) £13.15 (London), meaning a pay-rise for hundreds of thousands of workers. With the rising cost of living, it’s more important than ever.
Find out more ⬇️https://t.co/1AXpPdI02j pic.twitter.com/mmx42aIaKm
What is the Real Living Wage?
According to the Real Living Wage Foundation, the current rate is £12 an hour and applies to all those aged 18 and over.
This rate is voluntary with employers not legally required to pay this. It is calculated to meet everyday needs such as the weekly shop.
The Scottish Development International (IDS) says this Real Living Wage is keenly promoted in Scotland with more than 3000 employers now Living Wage accredited.
While this rate is the same in Scotland as it is in other parts of the United Kingdom, there are some differences between London and the rest of the country.
The Real Living Wage in the capital is currently £13.15 per hour.
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