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  1. #1
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    Oct 2017
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    Default What Is The Difference Between National Living Wage And National Minimum Wage

    I do find it confusing when the terms like Living Wage, National Living Wage and the National Minimum Wage are used. Can someone clarify what is the difference between national living wage and national minimum wage? Or is it all the same thing? Surley you shoild be able to live on a minimum wage so terefore it is a living wage, right?

  2. #2
    Join Date
    Oct 2017
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    The national minimum wage is exactly what it says, minimum wages that are set by the government every year and employers are required to pay that by law. And there are different rates for different age groups.

    For instance, national minimum wage in 2017/18 is as follows:

    1. Apprentice 3.50
    2. Under 18 4.05
    3. 18 to 20 5.60
    4. 21 to 24 7.05
    5. 25 and over 7.50

    The National Living Wage is same as a national minimum wage. The government has just started to use the new term. So before they called it National Minimum Wage and now it is rebranded to a National Living Wage. So the same figures and rules and laws apply here.

    That is what many people find confusing, Living Wage is something completely different. A lot of people get Living wage and National Living wage mixed up.

    As National Living Wage or National Minimum Wage is enforced by law then Living Wage is not and it basically means that it is the real wage that people need to earn in order to live in the real world. For instance, Living Wage in London is 10.20 but employers are not required to pay that by law, they are only required pay National Living Wage that is 7.50 an hour. But companies can pay Living Wage voluntarily if they want their employees to have some sort of standard of living.

    I know it is all very confusing, and whatever the figures and names are, Living Wage or Minimum Wage, realistically you can not have a normal life on these wages. You either have to work 100 hours a week or cut your expenses down so drastically and share a room with 10 other people. The cost of living and these wages do not match up at all.

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