`The Chartered Institute of Payroll Professionals
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The percentage of employee jobs paid at or below the minimum wage varies across countries and regions of the UK. Coverage was lowest in London and the South East and highest in Northern Ireland in 2022.
Workers aged 25 and over were more likely to have jobs paid at or below the NLW if they had more than one job, were employed on a temporary basis, worked part-time or worked in the private sector. Women in this age group were more likely to be in a minimum wage job than men.
Around 5% of employee jobs held by 25 – 29-year-olds were paid at the NLW. This is higher than 30 – 49-year-olds (4%), around the same as 50 – 64-year-olds, and lower than workers aged 23-24 and 65+ (9%).
How does the NMW compare to minimum wages in other countries?
In 2021, the UK had the eighth highest adult minimum wage out of 25 Organisation for Economic Co-operation and Development (OECD) countries (based on the NLW rate) after considering differences in the cost of living. The value of the UK NMW is relatively high compared to minimum wages in other OECD countries. The reports compares the NLW with minimum wages in other countries, and states that the UK had the eighth highest minimum wage out of 24 OECD countries in 2021 after adjusting for differences in the cost of living. The design of NMW regimes also varies between countries and some countries do not have a minimum wage. In addition, the report considers national minimum wages as a proportion of median earnings. On this basis, the UK ranked in the middle of the distribution of national minimum wages in 2021 (the latest year for which data are available). As the NLW increases in value to 2024, the UK is likely to move into the top third of the country rankings.
You can access the full report here.
The CIPP are proud to have held roundtable events with the LPC to allow our members to give qualitative feedback directly to commissioners. If you are interested, please keep an eye out for future roundtable invites which will be sent to full, fellow and chartered members. Thank you to all members who took part last year or fill out our survey, your contributions are greatly appreciated.
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