National Minimum Wage/Living Wage - GCSE Business Definition

The National Minimum Wage (NMW) and National Living Wage (NLW) are the minimum amounts that employers in the UK are legally required to pay their workers. This helps protect employees from being underpaid. The NMW applies to those who are school-leaving age and older, while the NLW is a higher rate for workers aged 23 and over. The rates are set by the government and are reviewed annually to reflect changes in the cost of living. They ensure fair compensation for work done and help prevent exploitation in the workplace. Understanding these wage concepts is crucial for GCSE Business students, as they affect business costs, employee motivation, and the broader economy.