Comparative Tax Take: Living Wage versus Minimum Wage
2014
Individual |
Individual 32 hours per week (Living Wage: £7.65/hour) |
Partnered Parent 40 hours per week (minimum wage: £6.31/hour) |
Partnered Parent |
|
| Gross annual pay (A) | 10499.84 | 12729.60 | 13124.80 | 15912.00 |
| Income tax (B) [(A-10000)*20%] |
99.97 | 545.92 | 624.80 | 1182.40 |
| Employee's NI (C) [(A-7956)*12%] |
305.26 | 572.83 | 620.16 | 954.72 |
| Working Tax Credit (D) | 702.22 | 103.54 | 1302.44 | 553.95 |
| Child Tax Credit (E) | 0.00 | 0.00 | 2160.56 | 2160.56 |
Net annual income |
10796.83 | 11714.39 | 15342.84 | 16489.39 |
| Employer's NI (F) [(A-7956)*13.8%] |
351.05 | 658.76 | 713.18 | 1097.93 |
| Total net tax [B+C+F-D-E] |
54.06 | 1673.97 | -1504.86 | 520.54 |