National Living Wage / National Minimum Wage changes for April 2020

Following recommendations by the Low Pay Commission in Autumn 2019, the government has decided to increase the national living wage (NLW) and national minimum wage (NMW).
The accepted changes are as follows:
- NLW for those 25 and over increases from £8.21 to £8.72 an hour;
- NMW for those between 21 and 24 increases from £7.70 to £8.20 an hour;
- NMW for those between 18 and 20 increases from £6.15 to £6.45 an hour;
- NMW for those 16 or 17 increases from £4.35 to £4.55 an hour; and 
- The apprentice rate for under 19s or those in their first year of apprenticeship will increase from £3.90 to £4.15 an hour.
Subject to parliamentary approval, these changes will come into effect in April 2020.
Chancellor Sajid Javid has vowed to increase the NLW to £10.50 an hour by 2024. The chancellor also has plans to extend the NLW to cover workers aged 23 and over instead of 25 and over from April 2021, and to further extend this to workers aged 21 and over within the next 5 years.
Wansbroughs will be keeping an eye on this and reporting any future updates.
If you would like more advice on this topic, please contact the Commercial Team at Wansbroughs on 01380 733300, or at commercial@wansbroughs.com

Last updated 08/01/2020