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living wage increases 2020

National Minimum Wage Increases from April 2020

The government has announced a 6.2% increase in the National Living Wage (NLW), which applies to workers aged 25 and over.

From 1 April 2020 the NLW will rise from the current rate of £8.21 to £8.72 an hour, in the largest raise since it was introduced two decades ago.

New rates from April 2020

The government has confirmed that the new rate will start on 1 April, 2020 and will result in an increase of £930 annually for 2.8 million full-time workers earning the NLW.

Workers aged under 25 earning the National Minimum Wage (NMW) will also see increases of between 4.6% and 6.5%, depending on their age.

Low-paid workers will receive a 6.2% pay rise with a new National Living Wage (NLW) of £8.72 per hour.

This is the biggest cash increase ever, the Government has announced at the start of the year.

Nearly 3 million workers are set to benefit from the increases to the NLW and minimum wage rates for younger workers, according to estimates from the independent Low Pay Commission.

60% of workers to earn median wage

The rise means Government is on track to meet its current target for the NLW to reach 60% of median earnings by 2020.

Younger workers who receive the National Minimum Wage will also see their pay boosted. They’ll see increases of between 4.6% and 6.5%, dependant on their age.

21-24 year olds seeing a 6.5% increase from £7.70 to £8.20 an hour.

Raising pay for millions

Bryan Sanderson, Chair of the Low Pay Commission (LPC), said: “The NLW has been an ambitious long-term intervention in the labour market.

“The rate has increased faster than inflation, faster than average earnings and faster than most international comparators.

This has raised pay for millions without costing jobs, although employers have had to make a variety of other adjustments to deal with the increases”

If you want to talk to us about this might affect your company and taxes, please contact us on 01743 790086or info@holliesbookkeeping.co.uk