Minimum Wage Rates Increase from 1st April 2020
It has been announced that on the 1st April 2020 the minimum wage will increase by amounts ranging from 4.6% to 6.5%. The National Minimum Wage (NMW) is the minimum pay per hour that most employees are entitled to by law. An employee's age and if they are an apprentice will determine the rate they will receive.
These rates were recommended to the government by the Low Pay Commission, an independent body that advise on the national minimum wage and living wage. It is estimated that approximately three million workers will see pay increases due to the new rates being introduced. Employees aged 25 and over will see a rise of 51p from £8.21 to £8.72, which will result in an increase of £930 annually.
Please see the current rates and the new rates below:
| Rates from 1 April 2019 are | Rates from 1 April 2020 will be | |
| 25 yrs old and over | £8.21 per hour | £8.72 per hour |
| 21-24 yrs old | £7.70 per hour | £8.20 per hour |
| 18-20 yrs old | £6.15 per hour | £6.45 per hour |
| 16-17 yrs old | £4.35 per hour | £4.55 per hour |
| Apprentices under 19 or 19 or over who are in the first year of apprenticeship |
£3.90 per hour | £4.15 per hour |
It has also been recommended by the Low Pay Commission that the national living wage will be paid to employees aged 21 and over. The National Living Wage is an obligatory minimum wage currently paid to employees aged 25 and over that was introduced in April 2016. The government aims to achieve this recommendation by 2024.
