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Pay Rates 2021

Agency pay often varies greatly! In this blog we will tell you about government set National Living Wage and the independently calculated Real Living Wage.

What is National Living Wage?

The National Living Wage is a government set pay scale that was introduced in 2016 and set a differentiation between the lowest wage over 25’s received and under 25’s received. Under 25’s rates are still referred to as National Minimum Wage.

The National Living Wage (NLW) for over 25’s is £8.72.

Whereas the National Minimum Wage (NMW) for 21-24-year olds is £8.20 and for 18-20-year olds it is £6.45.

These rates are set to increase in April 2021, with the NLW set to rise to £8.91, and the NMW rising to £8.36 for ages 21-22 and £6.56 for ages 18-20.

In addition to these increases, the National Living Wage age will be brought down to 23 and above from April 2021.

The National Living Wage is calculated as a percentage of the median UK Weekly Wage, which calculates to £14.85 per hour. The percentage is currently 60% but the sitting government have set a target to reach 66% by 2024.

What is the Real Living Wage?

The Real Living Wage is set by the Living Wage Foundation, an organisation born out of the campaign for fair pay for a hard day’s work.

The Living Wage Foundation use a basket of goods and services to calculate the Real Living Wage. This is with the intent of raising wages based on reality rather than percentage.

Unlike the National Living Wage/National Minimum Wage, there is not multiple age classifications. They believe everyone over the age of 18, should be receiving the Real Living Wage.

They do however have a London Weighting Rate, which makes allowances for the increase cost of living in London.

The Real Living Wage is currently set at £9.50 across the UK and £10.85 in London.

What does Ocala Healthcare Pay?

At Ocala Healthcare, we believe very passionately that carers work exceptionally hard (whether in a pandemic or not!) and deserve fair pay for the outstanding care and dedication they deliver every day.

That is why in addition to ensuring we pay the Real Living Wage, we also pay enhancements for shifts outside of normal hours, such as overnight, weekends and bank holidays!

Our pay rates for 2021 are;

Monday to Friday Day- £9.50

Monday to Friday Night - £10.20

Saturday and Sunday Day - £10.00

Saturday and Sunday Night - £10.50

Bank Holiday Day - £13.00

Bank Holiday Night - £16.00

Our Conclusion

The National Living Wage being set at 60% is wrong, many key workers are undervalued and are paid this rate. If you are paid 59% or lower, you are considered in relative poverty. Therefore, if you are under 25 and paid the minimum wage, that is the bracket you would sit. This is unacceptable for hard working people that are putting in 37.5-hour weeks.

I am not aware of water, electricity or gas bills being reduced if you are under 25?

The Real Living Wage takes an approach to setting the pay rate that is based on the reality we face, rather than political percentage targets. By paying the Real Living Wage, people can work to live, rather than live to work.

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