Millions to get pay rise within weeks as minimum wage rises to £12.70 an hour

MILLIONS of workers are set to get a pay rise in weeks as the minimum wage is set to increase to £12.71 an hour.

The National Living Wage is set to increase from £12.21 to £12.71 an hour in April, an increase of 50p.

Woman calculating personal finances and bills.
Millions of workers will see their pay rise in weeksCredit: PA

The boost comes as part of plans to improve national living standards.

As a result, the average salary of a minimum wage worker who does 40 hours a week would increase from £25,397 to £26,437.

Those who are aged 18 to 20 will see their wage increase from £10 an hour to £10.85 an hour, giving them an extra 85p an hour.

Meanwhile, workers who are under 18 and apprentices will see their pay climb from £7.55 to £8, an increase of 45p.

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The Chancellor estimates that 2.7 million people will benefit from the increase.

But although the pay increases will be welcome news for workers, businesses have warned that it will cause further pressure at a time when they are already struggling with rising costs.

As a result, companies could stop hiring or enter a temporary freeze.

Among them is Hollywood Bowl, which has warned it will be hit by business rate rises and minimum wage hikes.

To check if you are being paid correctly, you can use the government’s national living wage calculator.

It will help you to determine if you are being paid in line with the legal requirements.

If you believe that you are being underpaid then there are two main ways to address the issue.

One option is to chat to your boss and ask them to backdate your pay and ask them to pay you the correct rate going forward.

Or you can anonymously report the company to HMRC online.

Who gets the National Minimum Wage and am I entitled?

TO qualify for the National Minimum Wage, you have to be of school-leaving age, which is usually above 16.

You are eligible to receive the pay rate if you work full-time, part-time or as a casual labourer.

You are also entitled to the National Minimum Wage if you are an agency worker.

Apprentices also qualify for a National Minimum Wage, as well as trainees and staff still in their probationary period.

The rates also apply to disabled workers.

Those who are self-employed, voluntary workers, company directors, and family members who live in the home of the employer and do household chores do not qualify for the minimum wage.

Au pairs, members of the armed forces, and people on a government employment programme are also not entitled to the payment.

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