National Minimum Wage & National Living Wage

What are the changes?

New national minimum rates of pay take effect from 1 April 2020:

  • The National Living Wage for ages 25 and above - up 6.2% to £8.72
  • The National Minimum Wage for 21 to 24-year-olds - up 6.5% to £8.20
  • For 18 to 20-year-olds - up 4.9% to £6.45
  • For under-18s - up 4.6% to £4.55
  • For apprentices - up 6.4% to £4.15

These are significant increases and may impact small businesses, therefore it is important to be aware of the change now in order to plan and budget for the increased costs.

Loates Tips:

  • The government has pledged that the national living wage rate will reach two-thirds of median earnings within five years.
  • On current projections, this would be around £10.50 in 2024. Therefore businesses should factor these increases into the 3-5 year financial projections in terms of labour costs.
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