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National Minimum Wage 2020

National Minimum Wage 2020
The treasury has announced that from 01 April 2020, the National Living Wage will increase by 6.2%. In real terms, this means that any employee over 25 years of age must now be paid at least £8.72 per hour.For those of you who are or employ workers aged under 25, there are also increases to the other minimum wage bands between 4.6% and 6.5%.
 
National Minimum and Living Wage rates are reviewed annually and changes are usually effective from April each year. The current and historic minimum wage bands can be checked at any time at https://www.gov.uk/national-minimum-wage-rates
 
The current rates and new (April 2020) rates are shown in the below table:
Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice
April 2019 (current rate) £8.21 £7.70 £6.15 £4.35 £3.90
April 2020 £8.72 £8.20 £6.45 £4.55 £4.15
 
It is worth noting that you must fulfil specific criteria to be paid an apprentice rate.

Apprentice rates can be paid to any apprentice who is:
Aged under 19
Aged 19 and above but in the first year of an apprenticeship
 
Apprentices aged 19 and above or who have completed the first year of their apprenticeship are entitled to the minimum wage for their age bracket.
 
All this is good news for employees, but another compliance minefield for employers. Whether you operate your payroll weekly, monthly or anywhere in between, you must ensure that the new rates are implemented from your first pay date from 1st April 2020.
 
 
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