News & Updates

Minimum Wage Increases for 2020

Claudia Williams HR Advisor
By Claudia Williams, HR Advisor

The National Minimum Wage is the minimum wage per hour a worker is entitled to in the UK. These rates are reviewed annually by the government, who have this week confirmed that the National Living Wage (for employees over the age of 25) is set to rise by a huge 6.2%. This means a full-time worker who receives the National Living Wage will receive a pay rise of £930. 

From 1 April 2020, the new rates are: 

  • The National Living Wage for ages 25 and above: up 6.2% to £8.72 
  • The National Minimum Wage for 21 to 24-year-olds: up 6.5% to £8.20 
  • For 18 to 20-year-olds: up 4.9% to £6.45 
  • For under-18s: up 4.6% to £4.55 
  • For apprentices: up 6.4% to £4.15 

It is important to ensure that where required, your employees’ rates of pay are increased in line with the updated figures. Please be aware that HM Revenue and Customs can take employers to court for failing to pay at least the statutory rate. 

It is also important to note that although these rates take affect from the start of April, workers are only entitled to the new rate for pay reference periods that start on or after 1st April, e.g. if a monthly paid worker has a pay reference period that ends on 10th April, they would only be entitled to receive the new, increased rate from the first day of the new pay reference period, starting on 11th April. 

If you require any advice regarding the above statutory rates, please do not hesitate to contact your designated HR Advisor.