Be ready for those wage rises from 1st April 2020
You will be aware that the National Living Wage (NLW), applying to all those aged 25 and over, is adjusted each April and this year is no different. In April 2020 it will increase from the current £8.21 to £8.72 per hour.
Younger workers receiving the National Minimum Wage (NMW) will also see pay rises, with increases of between 4.6% and 6.5%, dependent on their age.
The Chancellor has also announced plans to extend the NLW to cover workers aged 23 and over from April 2021, and those aged 21 and over within the next five years.
The minimum hourly rates to be applied from 1 April 2020 are:
Workers aged 25 and over (NLW) up from £8.21 to £8.72
Workers aged 21–24 up from £7.70 to £8.20
Workers aged 18–20 up from £6.15 to £6.45
Young workers rate for workers aged 16–17 up from £4.35 to £4.55
Apprentices under 19, or over 19 and in the first year of the apprenticeship will see an increase from £3.90 to £4.15
These are relatively big increases and will also impact on other costs such as pension contributions, so make sure that you have factored this into your budgeting for the new tax year.
Posted on 14 Jan 2020