National Minimum and Living Wage Increase 2020: The New Pay Rates

We are approaching that time of year again where the National Living and Minimum wage increases. This year, it will see workers have the biggest cash increase to date with many expected to have a raise of up to £930 a year*.

With the National Living Wage (NLW) now sitting at £8.72 (an increase of 6.2% from the current £8.21) millions of workers are set to heavily benefit from this increase.

Prime Minister Boris Johnson, released a statement about the new pay rates saying:

“Hard work should always pay, but for too long, people haven’t seen the pay rises they deserve. Our government will put a stop to that, giving nearly three million people from Edinburgh to Eastbourne a well-earned pay rise, including the biggest ever cash boost to the National Living Wage. But that’s not all. As we enter a new decade, we’re setting our sights higher, to help people earn more over the next five years and level up access to opportunity across our great country.”

gov.uk website

What are the key points to the annual pay increase?

  1. The new NLW rate starts on 1 April 2020 and applies to over 25-year-olds
  2. Those in the National Minimum Wage bracket will still see a significant increase, between 4.6-6.5% (depending on age)

A Breakdown of the 2020 pay rates

These new rates were recommended by the Low Pay Commission, who are an independent body that advises the government. This body consults with a number of unions, business and academics to try and determine the best increase for the year.

  • Over 25s (NLW): £8.72 (6.2% increase from £8.21)
  • 21-24-year-olds: £8.20 (6.5% increase from £7.70)
  • 18-20-year-olds: £6.45 (4.9% increase from £6.15)
  • Under 18s: £4.55 (4.6% increase from £4.35)
  • Apprentices (in their first year): £4.15 (6.4% increase from £3.90)

We have created an infographic for you to take away, detailing all of the key points made in this blog, download it today.

At Regional Recruitment Services, we work collaboratively with our customers to ensure that these increases are met and that the transition is as smooth as possible. To find out more about how we can support your business with agency workers contact our team today on 0116 262 3733 or through our website.

*The £930 increase compares the gross annual earnings of a person working 35 hours per week on the new NLW Rate from the new rate (£8.72) verses the 2018/2019 rate £8.21

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