Rishi Sunak is set to announce a rise to the national living wage in his budget on Wednesday - but will it impact Scotland?
The national living wage is currently set at £8.91/hour across the UK, however this will rise to £9.50/hour from April next year.
Minimum wages will also see an increase depending on age groups.
These changes will apply to Scotland because minimum and living wages are not devolved, meaning the UK government holds the power.
As a result, those on national living wage in Scotland will be paid £9.50/hour from April 1 2022.
The national minimum wage will also see rises:
- 21-22-year-olds will see increases from £8.36 to £9.18
- 18 to 20-year-olds will see increases from £6.56 to £6.83
- Under 18s will see increases from £4.62 to £4.81
- Apprentice Rate will increase from £4.30 to £4.81
Here's what you need to know about the national living wage and national minimum wage, and the incoming changes.
Is the national living wage compulsory?
The national living wage is compulsory for most workers over the age of 23 in the UK.
It means that employers must pay workers aged 23+ in England, Scotland, Wales and Northern Ireland at least £8.91/hour, and this will increase to £9.50 from April 1 2022.
What is the difference between living wage and minimum wage?
National minimum wage is the lowest per hour someone under the age of 23 can be paid.
Wage differs by age, increasing as people near 23.
When workers hit the age of 23, they must be paid national living wage at the very least.
Read more: Date, time and how to watch autumn budget announcement
Read more: What's the difference between the budget and spending review
When will the increase in national living and minimum wage come into effect?
The changes to national living wage and national minimum wage will come into effect from April 1 2022.
What date is budget 2021 announcement?
Rishi Sunak will deliver the autumn budget on Wednesday October 27 at around 12:30pm.
This will coincide with the conclusion of the spending review, which will also be announced on Wednesday.
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