Low-paid workers will receive a 6.2% pay rise with a new National Living Wage (NLW) of £8.72 per hour, the biggest cash increase ever, with the new rates coming into effect from 1st April 2020.
The increased rates were recommended by the Low Pay Commission, an independent body that advises the government about the National Living Wage and the National Minimum Wage.
The National Living Wage (for over 25 year olds) will increase 6.2% from £8.21 to £8.72.
The National Minimum Wage will rise across all age groups, including:
- A 6.5% increase from £7.70 to £8.20 for 21-24 year olds
- A 4.9% increase from £6.15 to £6.45 for 18-20 year olds
- A 4.6% increase from £4.35 to £4.55 for Under 18s
- A 6.4% increase from £3.90 to £4.15 for Apprentices
In real terms this will be a £930 increase in annual earnings when compared to the gross annual earnings of a person working 35 hours per week on the new NLW rate from April (£8.72) versus the 2018/19 NLW rate (£8.21).
As part of our payroll services we help you ensure your staff on National Minimum Wage or National Living Wage are on the correct wage for their age when these changes come into effect.
For all enquiries on National Living Wage, National Minimum Wage and any other payroll matters, please contact us on 01384 402930.