Money

The National Minimum Wage is the minimum pay per hour which most workers are entitled to.

All employers are legally obliged to pay at least this minimum amount, no matter how small/large their business is.

The National Minimum Wage in the UK changes every April. The current rate stands at:

To be eligible for the National Minimum Wage, workers must be at least the legal school leaving age. There is a category of workers not entitled to the Minimum wage, these fall into the following categories:

The National Living wage is a rate introduced by the UK government for all staff over the age of 25 years old.

This rate, inspired by the Living Wage campaign, is based on a target aiming to reach 60% of median earnings by 2020.

This rate stands at £7.83 and is a legally binding rate which companies must abide by.

Separate to this, there is a wage rate based on what people need to really survive. This rate is called the “Real Living Wage” and is a voluntary rate which over 4,200 UK businesses have now chosen to pay. The Real Living Wage stands at £8.75 in the UK and £10.20 in London.

Most workers over the age of 16 are eligible for the National Minimum Wage, whereas the National Living Wage only applies to those over the age of 25.

To add to this, the National Minimum Wage stands at £7.38 and the National Living Wage is at £7.83. The National Minimum Wage is set through negotiations from business and trade union recommendations, whereas the National Living Wage is a percentage of medium earnings which stands at 55%.

As an apprentice, you are entitled to the National Minimum Wage which stands at £3.70 an hour.

Apprentices under the age of 19 and apprentices aged 19 or over but in their first year, are entitled to the rate of £3.70.

As the UK does not have a specified number of hours for a full-time job, we can estimate that a full-time employee is expected to work at least 35 hours a week.

A part-time job, as a form of employment, requires fewer hours than a full-time job. Those contracted in a part-time job may work anywhere from 1 hour per week to around 35 hours a week.

The majority of full-time and part-time students are eligible to apply to Student Finance England, online through the official site.

As a student, you can apply for:

You can apply for loans up to 9 months after the start of the academic year for your course, however, we would recommend you to apply as early as possible.

If your course starts between 1st August - 31st December, you are recommended to apply by 31st May.

In order to pay for your university and help with your living costs, most students in England are eligible to apply for a student loan.

For your tuition fee loan, it is normal for students to receive the entire sum they require each term to pay for their tuition fees at university. This fee will go straight to the university, saving you the trouble of having to transfer it.

In terms of a maintenance loan, the amount you receive of this loan will depend on your individual circumstances. When you apply for student finance, you will be asked questions about your living situation, parents income and family circumstances (e.g. if you have children). The amount you receive will then be calculated depending on how much help you require.

Maintenance grants were replaced by loans in 2016 for new full-time students in England. There are, however, still circumstances by which students can apply for grants. If you fall under eligibility for certain benefits, need help with childcare costs, or have a disability, you can apply for a student grant.

To find out more about whether you are eligible for a student grant, visit the student finance site here.

Employees in the UK will pay Income Tax and National Insurance.

Income Tax

For most students, your level of income will not reach the amount to which you are required to pay. Generally, employees are not required to pay tax on an income of up to £11,850.

The tax system in the UK, from this point, works on the basis of marginal rates. Therefore, the amount of tax you pay isn’t the same on everything you earn. You will pay a lower percentage on the lower part of your income, and a higher percentage on the higher part of your income.

The tax rate is worked out according to the following:

As an example, if you earn £62,000, you would pay:

National Insurance

Wondering how much you can earn before being taxed?

If you earn more than £162 a week, you will pay National Insurance contributions.