Understanding Minimum Salary In The UK For Students

How much can one earn as a student in the UK? Well, there’s a glimmer of hope for students above 21 years of age as there’s been a rise in the hourly wage from £10.42 to £11.44 (National Living Wage). The rise in the UK minimum wage per hour in 2024 is making life comfortable and enhancing the students living in the UK.

Whether it’s student accommodation expenses, food, travel and other personal expenses, an increase in the minimum wage is providing great financial support for students.

The UK is one of the most sought-after student destinations in the world, and an expensive one too in terms of cost of living. But, with part-time or full-time jobs, they are managing finances as a student.

With a part-time job, students can lower their loans and at the same time learn new skills.

Here’s the rule: If you are a non-EU student, you can do a part-time job of up to 10 hours/ week during the semester and while you are on summer break, you can extend up to 20 hrs/ week depending on the visa. The most common among them is the Tier-4 visa where the number of hours is written on the sticker of your visa or Biometric Residence Permit (BRP).

What does the minimum salary in the UK mean?

The National minimum wage in the UK is worked out on an hourly rate and it also applies to all eligible workers even if it’s not paid on an hourly basis.

How is the minimum wage in the UK determined and on what factors?

Some of the factors that influence the minimum wage in the UK are:

Equilibrium Wage

If the minimum wage is set below the equilibrium wage rate, it will cause a high rate of unemployment. Thus, the government has sought to work out the equilibrium wage rate that the firms are ready to pay their employees.

Economic Growth

This is a very simple case, if there’s economic growth, there’s a demand for labor and automatically a pay rise. And vice versa!

Age Rate

The Low Pay Commission is the advisable body to the government on the National Living Wage. A different wage is set for different age groups to reflect the equilibrium wage rate set for the different age groups. Say, if one takes an apprentice job, the firm will have to invest money in the training. They will not be willing to pay more than the rate.

Geographical Conditions

This is an argumentative point where the UK should have different wage rates for parts of the UK. For instance, the pay scale should be higher in London (a.k. a Living Wage) as there are higher expenses here and the cost of living in London is very expensive.

Breakdown of the minimum wage rates in the UK.

As per Gov.uk, the National Minimum Wage and National Living Wage rates are given below:

Part-time Jobs Rules & Salary in the UK for International Students

One of the biggest living expenses is the housing rent and tuition fee, but the minimum wage can help cover the cost of students living in student accommodation UK.

The UK permits students to work part-time on a student visa. But there are some rules and regulations that must be followed by the students:

• If you are pursuing a full-time study, you cannot work for more than 20 hrs.,i.e. not more than 4hrs/day with weekends off.
• If you are pursuing a language course, then you cannot work for more than 10hrs/week.
• If your study is over, you can work full-time for 40hrs/week with weekends off.
• You are not allowed to work on a freelance basis.
• For full-time employment, you need to have a post-study work visa.

Maximum part-time job salary in UK: £15/hour

Minimum part-time job salary in UK: £11.50/hour

Some of the best part time jobs for students in the UK are as follows

Impact of Minimum Salary on Students

The UK minimum wage per hour for international students has a significant impact on the students in the UK. Most international students often rely on their part-time jobs to pay the student rent, which affects students living in student accommodation. It also affects the earnings, financial stability, and overall experience.

Challenges faced by students in meeting their living expenses with minimum wage jobs

• Financial Stability
• Quality of Life
• Academic Performance
• Budgeting
• Career Development
• Low-Paying Jobs

Budgeting Tips for Students

There are simple steps and strategies for managing finances on a minimum salary. It requires time, practice, habit and dedication. As per the 50-30-20 rule, it recommends putting 50% of salary into needs, 30% toward wants, and 20% toward savings. Here are a few ways for students to live on a budget in the UK:

• Get cheap shared private student housing UK
• Explore the student discount card like TOTUM (NUS Card)
• List the expenses and work on the 5–30-20 rule
• Track the spendings
• Create a better budget after checking on spending & expenses
• Plan your budget wisely
• Avoid any unnecessary spending
• Cook meals at home
• Try to take public transportation
• Try thrift shopping for clothes and books

Resources and Support

For more information about support services available to students regarding financial assistance, budgeting advice, etc check the government website: https://www.gov.uk/national-minimum-wage-rates

Conclusion With the wage structure over the past few years, you will have a clarity of how there’s been changes in the salary in the UK.

So far, we’ve tried to cover the important aspects and points of the minimum wage salary in the UK. So, while you are looking for a part-time job in the UK, be aware of their rights and resources regarding minimum wage and budgeting.