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Skip to main contentIn April 2016 the government introduced a higher minimum wage rate for all staff over 25 years of age inspired by the Living Wage campaign - even calling it the ‘national living wage’.
However, the government's 'national living wage' is not calculated according to what employees and their families need to live.
Instead, it is based on a target to reach 60% of median earnings by 2020. Under current forecasts this means a rise to less than £9 per hour by 2020.
For under 25s, the minimum wage rates also take into account affordability for employers.
The real Living Wage rates are higher because they are independently-calculated based on what people need to get by. That's why we encourage all employers that can afford to do so to ensure their employees earn a wage that meets the costs of living, not just the government minimum.
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