From April 2016 the government is introducing the new mandatory National Living Wage which will replace the National Minimum Wage for all workers over 25.
The new rate will be £7.20 per hour.
The adult NMW rate is currently £6.70. From April 2016 the premium will come into effect on top of the NMW, taking the national living wage to £7.20. The current NMW will continue to apply for those aged 21 to 24, with the premium added on top for those aged 25 and over, taking the total hourly rate to the national living wage.
The new rate is said to move the UK from a low wage, high tax, high welfare society to a higher wage, lower tax, lower welfare society.