A new National Living Wage is being introduced in 2020 which will see workers earn nearly £1,000 more every year.
The new rate of pay, which comes into force on April 1, will result in a rise from £8.21 to £8.72 for workers over the age of 25, up 6.2 per cent.
A full-time worker who receives the National Living Wage will receive a pay rise of £930.
Younger workers who are at least school leaving age will also receive a boost to the National Minimum Wage of between 4.6 per cent and 6.5 per cent, depending on their age.
The improved rates were recommended by the Low Pay Commission, which advises the Government, and increases across all age groups are as follows:
- A 6.5% increase from £7.70 to £8.20 for 21 to 24-year-olds
- A 4.9% increase from £6.15 to £6.45 for 18 to 20-year-olds
- A 4.6% increase from £4.35 to £4.55 for under-18s
- A 6.4% increase from £3.90 to £4.15 for apprentices
What’s the difference between the National Living Wage and Minimum Wage?
Introduced in 2016, the National Living Wage is billed as a higher minimum wage rate for workers aged 25 and over and the National Minimum Wage applies to people of at least school leaving age.
Workers are also entitled to the correct minimum wage if they’re:
- Casual labourers, e.g. hired for one day
- Agency workers
- Workers and homeworkers paid by the number of items they make
- Apprentices and trainees, workers on probation
- Disabled workers
- Agricultural workers
- Workers from overseas
- Offshore workers
All employers need to be aware of their responsibilities regarding compliance with the National Living Wage and the National Minimum Wage.
If you have any queries relating to the impending increase, please contact our payroll team via the details below.
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