National Living Wage/National Minimum Wage Changes 2020
On New Year’s Eve the government published the new hourly rates for the National Living Wage and the National Minimum Wage that will come into effect from April 2020.
The National Living Wage, for those aged 25 and above, will rise by 6.2% which the government says is ‘the biggest cash increase ever.’ The minimum wage for those under 25 will also rise.
National Living Wage
2019/20 – £8.21
2020/21 – £8.72
National Minimum Wage (Aged 25 and Over)
2019/20 – £7.70 -(Aged 21-24) £6.15 -(Aged 18-20) £4.35 -(Under 18) £3.90 -(Apprentices)
2020-21 – £8.20 -(Aged 21-24) £6.45 -(Aged 18-20) £4.55 -(Under 18) £4.15 -(Apprentices)
In September 2019 the government accepted a recommendation from the Low Pay Commission that the National Living Wage should gradually be phased in for younger workers over 21 over the next few years.
Interestingly, recent data from Citizens Advice Scotland revealed that 37,000 people in Scotland were paid less than the statutory rates last year. They also revealed that employers across the UK owed about £6,500 on average in unpaid arrears to workers. It is very easy to fall into the trap of underpaying employees on the National Living Wage and National Minimum Wage. For example, memberships of Christmas savings clubs and payments for work uniform can inadvertently push employees under the National Living Wage and National Minimum Wage thresholds so employers need to take care.
If you would like further advice on the National Living Wage or the National Minimum Wage, please contact the Tamar HR team on 01579 343700.