HR Update – National Living Wage and National Minimum Wage, Rate Increases
National Living Wage and National Minimum Wage – Rate Increases
What is changing?
From 1st April 2020, the rates for National Living Wage (for workers aged 25 and over) and
the National Minimum Wage (for workers aged under 25) will increase.
What do I need to know?
The 6.2% increase in the National Living Wage is double the rate of average annual wage
growth and also twice the current rate of inflation therefore the impact on small businesses
could be significant.
The new rates will be as follows:
National Living Wage
£8.72 per hour (from £8.21) for workers aged 25 and over
National Minimum Wage
£8.20 per hour (from £7.70) for workers aged 21 to 24
£6.45 per hour (from £6.15) for workers aged 18 to 20
£4.55 per hour (from £4.35) for workers aged 16 and 17
£4.15 per hour (from £3.90) for apprentices aged under 19 and those aged over 19 in the
first year of their apprenticeship
What do I need to do?
Review your hourly rates to ensure they will not fall below the new rates on 1st April 2020
and, should there be any workers that require pay increases, check that the pay gap
between those workers and their managers is sufficient.
Should you have any questions at all, require any further information or want to discuss
requirements around statutory national wage rates, please contact Jacqui Green on 07904
151008 or email email@example.com