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Changes to Minimum Wage Rates

Changes to Minimum Wage Rates
21 Feb 2020
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Changes to Minimum Wage Rates

From April 2020, the National Living Wage (NLW) and National Minimum Wage (NMW) pay rates will increase as set out below.

  • NLW rates for workers aged 25 and over - from £8.21 to £8.72 per hour.
  • NMW rates:
  • workers aged 21–24 — from £7.70 to £8.20 per hour
  • workers aged 18–20 — from £6.15 to £6.45 per hour
  • workers aged 16–18 — from £4.35 to £4.55 per hour
  • apprentice rate — from £3.90 to £4.15 per hour.

Workers must be at least school leaving age to get the NMW. They must be 25 or over to get the NLW.

Contracts for payments below the NLW and NMW rates are not legally binding. The worker is still entitled to the NMW or NLW. Workers are also entitled to the correct minimum wage if they are:

  • 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

Employers are reminded that these rates are not optional. HMRC police the NMW and NLW regulations and employers found to be in breach will be subject to penalties and will be required to repay any arrears to affected employees.

 

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