Insights
Insights 15.5.20 Author: Andreja Okamgba

National Minimum Wage and National Living Wage Rates Increased

Insights 15.05.2020 Author: Andreja Okamgba

From 1 April 2020, the minimum wage rates have increased by amounts ranging from 4.6% to 6.5%. The National Minimum Wage is the minimum pay per hour that most employees are entitled to by law. An employee's age and if they are an apprentice will determine the rate they will receive.

These rates were recommended to the Government by the Low Pay Commission, an independent body that advises on the National Minimum Wage and National Living Wage. It is estimated that approximately three million workers will see pay increases due to the new rates being introduced. Employees aged 25 and over will see a rise of 51p from £8.21 to £8.72, which will result in an increase of £930 annually.

Please see the current rates and the new rates below:

  Rates from 1 April 2019 were Rates from 1 April 2020 are
25 years old and over £8.21 per hour £8.72 per hour
21-24 years old £7.70 per hour £8.20 per hour
18-20 years old £6.15 per hour £6.45 per hour
16-17 years old £4.35 per hour £4.55 per hour
Apprentices under 19 or 19 or over who are in the first year of apprenticeship £3.90 per hour £4.15 per hour

It has also been recommended by the Low Pay Commission that the National Living Wage will be paid to employees aged 21 and over. The Government aims to achieve this recommendation by 2024.

What next?

If you require any help or advice regarding the National Minimum Wage and National Living Wage rates, please get in touch with our HR Consultancy team.