National Minimum & Living Wage 2020
Updated: Sep 29, 2021
Nearly 3 million workers are set to benefit from the new increases...
From Wednesday 1st April 2020, the National Minimum Wage and National Living wage rates will increase at the start of the new financial year. Increases are due to happen on 1st April every year to include all National Minimum Wage rates, Apprentice rate and the National Living Wage rate. The minimum hourly rate that a person can be paid depends on their age and whether or not they’re classed as an apprentice. With this just a matter of weeks away, the government has confirmed the National Minimum Wage and National Living Wage rates for 2020 to 2021.
The NMW & NLW rates, effective from 1st April 2020, are:
25+ years old get £8.72 per hour
21 to 24 years old get £8.20 per hour
18 to 20 years old get £6.45 per hour
16 to 17 years old get £4.55 per hour
£4.15 for apprentices under 19 or 19+ who are in the first year of apprenticeship
The payment first came into effect in April 2016 and was introduced by the then-Chancellor of the Exchequer George Osborne. The wage then began at £7.20 per hour and an increase every year is linked to a long standing pledge to deliver a rate of £9.00 an hour for over 25s by 2025.
According to estimates from the independent Low Pay Commission, nearly three million workers are set to benefit from the increases to the National Living Wage and Minimum Wage rates for younger workers.
How can you make sure your business is prepared for the changes?
1. Make sure you are clearly aware of the new minimum wage rates
2. Check that you know who is eligible for which rate in your organisation
3. Apply the rate through your payroll at the right time
See all national minimum wage and national living wages here.
Did you know….
Agricultural workers in Northern Ireland are entitled to the Agricultural Minimum Wage rates, rather than the NMW or NLW, unless the NMW or NLW rate is higher. No worker can be paid less than the NMW or NLW, but some agricultural workers must be paid more than the NMW or NLW because there is a higher Agricultural Minimum Wage rate. The rates change in April each year. See below for further information (Rates displayed accurate from 1 April 2019 per hour*)
Current rate from 1 April 2019 per hour*
Grade 1 - minimum rate applicable for the first 40 weeks cumulative £6.88
Grade 2 - standard worker £7.42
Grade 3 - lead worker £8.40
Grade 4 - craft grade £9.03
Grade 5 - supervisory grade £9.51
Grade 6 - farm management grade £10.32
*These are the minimum hourly rates before tax and national insurance deductions.
Whereat any time the NMW becomes higher than the hourly rate set out above, then the minimum rate shall be equal to the NMW. When overtime is to be applied after 39 hours of work, it will be applied at time and a half.