Millions to receive £1,040 pay rise from this Wednesday

Here's how it works

Millions could get more than £1,000 added to their annual wages, it has been revealed.

Like reported previously, the National Living Wage will increase from April 1 and that means those on it, believed to be around 2.7m workers, will see more money in their bank accounts.

For eligible workers aged 21 and above, the new rate level will be £12.71 per hour, and this marks an increase from £12.21 an hour.

As per The Mirror, someone on the minimum wage who works 40 hours a week should see their pay rise from £25,397 to £26,437 a year, which is a boost of around £1,040.

While pay brackets depend upon age, the minimum wage is the lowest hourly rate an employer has to pay by law and pay brackets.

For younger people, aged 18-20, the rate rise will be from £10 an hour to £10.85 an hour, while under-18s and apprentices will receive £8 an hour rather than the usual £7.55.

These rates are the base level but many employers pay above the minimum wage.

Some companies pay the Real Living Wage, which is a voluntary level, higher than statutory minimum wage, which is based upon cost of living.

What the new rules mean is that this is also due to rise by May: to £13.45 an hour outside London (£14.80 inside London).

To anyone who is self-employed, a volunteer or a company director, minimum wage rates do not apply.