Government announce that the National Living Wage will increase by 6.2% in April 2020
02 January 2020
- From 1 April 2020, the National Living Wage (NLW), applying to all those aged 25 and over, will increase from the current £8.21 to £8.72 per hour.
- Younger workers receiving the National Minimum Wage (NMW) will also see pay rises, with increases of between 4.6% and 6.5%, dependent on their age.
- Chancellor Sajid Javid has said that Government “want to do more to level up and tackle the cost of living, which is why the NLW will increase further to £10.50 by 2024 on current forecasts.”
- The Chancellor has also announced plans to extend the NLW to cover workers aged 23 and over from April 2021, and those aged 21 and over within the next five years.
The hourly rates to be applied from 1 April 2020 are:
|
|
From 1 April 2019 |
From 1 April 2020 |
|
Workers aged 25 and over (NLW) |
£8.21 |
£8.72 |
|
Workers aged 21–24 |
£7.70 |
£8.20 |
|
Workers aged 18–20 |
£6.15 |
£6.45 |
|
Young workers rate for workers aged 16–17 |
£4.35 |
£4.55 |
|
Apprentices under 19, or over 19 and in the first year of the apprenticeship |
£3.90 |
£4.15
|
Aspire Comment
Whilst the increase in NMW and NLW rates will be good news for workers, it will present further cost implications for employers who will need to factor in the increased cost of labour supply either by lowering profit, necessitating further cost saving initiative or increasing their charges.
If you are concerned about your compliance with the NLW/NMW, please contact Aspire on 0121 445 6178 or email enquire@aspirepartnership.co.uk to discuss how we can identify any risk areas within your company.
For more advice on NMW, NLW and other legislation, attend our seminars on 11 February 2020 in London or 13 February 2020 in Birmingham. Booking information will be released shortly. To express an interest, email enquire@aspirepartnership.co.uk.