What are the Increases to the National Minimum Wage and National Living Wage Going to be?

 

The new rate starts on 1 April 2020 and results in an increase of £930 over the year for a full-time worker on the National Living Wage.

Younger workers who receive the National Minimum Wage will also see their pay boosted with increases of between 4.6% and 6.5%, dependant on their age .

Apprentices are entitled to the apprentice rate if they’re either:

  • aged under 19
  • aged 19 or over and in the first year of their apprenticeship

From April, the new rates will be:

  • The National Living Wage for ages 25 and above – up 6.2% to £8.72
  • The National Minimum Wage for 21 to 24-year-olds – up 6.5% to £8.20
  • For 18 to 20-year-olds – up 4.9% to £6.45
  • For under-18s – up 4.6% to £4.55
  • For apprentices – up 6.4% to £4.15

Who gets the Minimum Wage

 

Workers must be at least school leaving age to get the National Minimum Wage. They must be 25 or over to get the National Living Wage.

Contracts for payments below the minimum wage are not legally binding. The worker is still entitled to the National Minimum Wage or National Living Wage.

Workers are also entitled to the correct minimum wage if they’re:

  • part-time
  • casual labourers, for example someone hired for one day
  • agency workers
  • workers and homeworkers paid by the number of items they make
  • apprentices
  • trainees, workers on probation
  • disabled workers
  • agricultural workers
  • foreign workers
  • seafarers
  • offshore workers

What is the Difference Between the National Minimum Wage and the National Living Wage?

 

The National Minimum Wage is the minimum pay per hour to which most workers aged 16 to 24 are entitled. The government reviews these rates every year and is advised on the level to set the minimum wage at by the Low Pay Commission.

The minimum wage for workers 25 and over is called the National Living Wage.