National Minimum Wage Increase Due In April 2020

The National Minimum Wage increases in April 2020 in what could be the biggest ever cash boost for UK workers ...

Estimates suggest these increases could result in a pay rise for over 3 million individuals and that full-time employees could enjoy up to £930 extra a year in their pay packets.

For those aged 25 or over, the increase is from £8.21 to £8.72 per hour. If a worker is aged between 21 and 24, it increased from £7.70 to £8.20 oper hour. 18-20 year old go from £6.15 to £6.45 an hour. Those who have just left school, but not reached the age of 18 go from £4.35 to £4.55 per hour.

In additions, the apprentice rate for those under 19 years of age, or over 19 and in the first year of their apprenticeship goes from £3.90 to £4.15 per hour.

It is important from your payroll reflects these changes from April 2020 as unintentional errors could result in claims for unlawful deductions of wages. Also, be sure you have checked the birthdates of your workers to ensure they fit in the right rate bracket at the right time.

Workers should be notified prior to the increases in National Minimum Wage in writing which is likely to be very well received and can be used as an opportunity to ensure their personal details are up to date in your systems. Remember, any overtime worked before the rate increase will still be paid at the old rates.

In addition, if you do pay more than National Minimum Wage rates, consider an increase in line with the rates after April 2020 and retain your competitive advantage in recruitment and retention of your workforce.

There are still a couple of months before the introduction of the new National Minimum Wage increase, but it's definitely worth starting to plan for the changes now.

If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.