A new National Living Wage and National Minimum Wage will be introduced from 1 April 2020. The new rates are as follows:
|National Living Wage||Current rate||New rate (2020)||% increase|
|Workers age 25 and over||£8.21||£8.72 per hour||6.2%|
|National Minimum Wage|
|Workers aged 21 – 24||£7.70||£8.20 per hour||6.5%|
|Workers aged 18 – 20||£6.15||£6.45 per hour||4.9%|
|Workers under 18||£4.35||£4.55||4.6%|
|Apprentices (in first year of apprenticeship or under age of 19)||£3.90||£4.15||6.4%|
What’s the difference between National Living Wage and National Minimum Wage?
Introduced in 2016, the National Living Wage is deemed to be a higher minimum wage rate for workers aged 25 and over and is legally binding. The National Minimum Wage is the minimum page per hour most workers are legally entitled to. This includes all part-time, flexible, agency workers and employees plus apprentices. The rates are set by the government and vary for each age group, typically rising each year.
You can ensure you’re paying the correct wages by using the government’s wage calculator.
There are a few other employment law changes coming into force this April, including:
- Changes to agency workers’ rights
- Changes to written statement of terms
- IR35 for the private sector
- Parental bereavement leave and pay
- Holiday pay reference period
Are you up to speed on all the employment law changes this April? See our checklist for full details.