>> The National Minimum Wage has increased again in 2021. For the updated rates visit this article. <<
As is customary, every April the National Minimum Wage increases. It can be hard, as an employer of interns or first jobbers, to have your finger on the pulse of exactly what that means in terms of annual salary equivalents. So to help you out we’ve calculated the annual salary equivalents for a 37.5 hour week (commonly Mon – Fri 9-5.30 with an hour lunch).
What has the National Minumum Wage increased from and to?
It’s always a good idea to check the Gov.uk website to be on the safe side. Here are the old and new rates as of April 2020:
The Real Living Wage
If you can afford it, we recommend that you pay graduates the Real Living Wage. It’s what the charity The Real Living Wage foundation have calculated a single person needs as a minimum to live in and outside of London. It’s a little bit more than the National Minimum Wage, but to keep an employee happy and healthy, we recommend it.
So assuming you’re happy to pay the Real Living Wage and your staff work 37.5 hours per week, what are the annual salary equivalents?
- £10.75 per hour in London equates to £ 20,962.50 per year
- £9.30 per hour outside of London equates to £ 18,135.00 per year
The National Minimum Wage annual salary equivalents
Depending on the age of your new recruit if you are opting to pay the legal minimum, and again assuming you work a 37.5 hour week, it will vary like this:
- Aged 18-20 – it’s £6.45 which equates to £ 12,577.50
- Aged 21-24 – it’s £8.20 which equates to £ 15,990.00
- Aged 25 or over – it’s £8.72 which equates to £ 17,004.00
Having read this perhaps you’re wondering what salary you should pay a recent graduate or what employee benefits will attract Gen-Z? We’ve written these articles as to guide you further.
If you have questions on salary or any other recruitment matter please do give us a bell on 020 3917 0790 or signup on our platform and we will help you out.
The National Minimum Wage has increased again in 2021. For the updated rates visit this article.