The prime minister will announce a rise in the minimum wage to £9.42 an hour “within weeks”, reports state.
And, the increase means that the annual earnings of someone on the “national living wage” – paid to those over the age of 23 – would go up by 5.7%.
At the moment, the current hourly rate for the same workers is £8.91 which is the equivalent of an annual salary of just over £16,000.
Someone working 35 hours a week would see their wage increase by £928 more per year before tax – or around £77 a month.
Boris Johnson is just weeks away from accepting the recommendations of independent advisors that the pay of the lowest earners should rise to £9.42 an hour, reports the Times.
The Low Pay Commission (LPC) makes recommendations on the minimum wage each year.
And, a government source said that Boris was likely to accept the commission’s recommendations in full, as other prime ministers have in the past, reports the Metro.
This would mean that the new wage would come into force from April 2022.
A new minimum wage of £9.42 would show the third biggest annual rise since the 2008 financial crash and subsequent recession.
Currently, the minimum wage is is £8.91 for those 23 and over, £8.36 for those aged 21 and 22, and £6.56 for 18 to 20-year olds.
Labour members voted for a minimum wage of £15 an hour at the party conference last week.
But, this vote is not binding.
It’s thought that Boris Johnson will announce the wage increase as part of a plan to “end Britain’s low-wage, low-growth economy.”
Speaking on ITV yesterday, the prime minister was asked about the wage hike and said: “We will take guidance from the low pay commission, and we will see where we get to.”
Do you think the increase is high enough? Tell us in the comments…
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