Rise in National Living Wage from April 2020

4th February 2020

Chancellor Sajid Javid has announced that the rates of the National Living Wage (NLW) and National Minimum Wage (NMW) are rising from 1 April 2020.

The hourly rates will increase in April 2020:

  • from £8.21 to £8.72 for workers aged 25 and over (the National Living Wage)
  • from £7.70 to £8.20 for 21-24 year olds
  • from £6.15 to £6.45 for 18-20 year olds
  • from £4.35 to £4.55 for 16-17 year olds
  • from £3.90 to £4.15 for apprentices aged under 19 or in the first year of their apprenticeship.

The Chancellor has previously announced that the NLW will increase to £10.50 per hour by 2024, provided economic conditions allow.

The Chancellor has also previously pledged to reduce the age at which the NLW applies from the current 25 to those aged 23 and over from 2021, and to those aged 21 and over within five years.

There may be further announcements in the forthcoming Budget on 11 March 2020.

Employers who do not pay at least the appropriate minimum wage face penalties as well as being named and shamed by HMRC.

If you would like to discuss the impact of these rises for your business, please contact your usual Bishop Fleming adviser.


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