A 6.2% increase
The government has announced a 6.2% increase in the national living (NLW) and national minimum wage (NMW) rates to take effect on 1 April 2020.
Make sure that your payroll manager or outsourced payroll provider takes account of the increases by adjusting the rates in payroll software, where applicable.
The new rates
From 1 April, the NLW for employees aged 25 and over rises from £8.21 to £8.72 per hour. The changes to NMW hourly rates are:
- employees 21 to 24, from £7.70 to £8.20
- employees 18 to 20, from £6.15 to £6.45
- employees 16 to 17, from £4.35 to £4.55
For apprentices who are 18 or younger and those in the first year of their apprenticeship, the hourly minimum rate changes from £3.90 to £4.15.
In summary, all the minimum wage rates increase from 1 April 2020 by 6.2%. Make sure that your payroll manager or outsourced payroll provider is aware and software is updated to take account of the changes.
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