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National Minimum Wage Increase Coming Soon

on Friday, 10 January 2020.

Following the recommendations of the Low Pay Commission on the National Living Wage (NLW) and the National Minimum Wage (NMW), new increases will come into effect in April 2020.

Subject to Parliamentary approval:

  • the NLW for workers aged 25 and over will increase from £8.21 to £8.72 per hour
  • the NMW for 21- to 24-year-olds will increase from £7.70 to £8.20 per hour
  • the NMW for 18- to 20-year-olds will increase from £6.15 to £6.45 per hour
  • the NMW for 16- to 17-year-olds will increase from £4.35 to £4.55 per hour
  • the apprentice rate for those aged under 19 or in the first year of an apprenticeship will increase from £3.90 to £4.15 per hour

In 2015, the Chancellor George Osbourne pledged to raise the legal pay floor for over 25s to £9 an hour by 2020, however, the government missed this target following weaker than expected average pay growth across the UK economy.

The current Chancellor, Sajid Javid, has pledged to increase the NLW to around £10.50 an hour by 2024, reflecting the recommendations of the independent Dube review. The government has also announced plans to expand the NLW to include workers aged 23 and over from April 2021, and to those aged 21 and over within five years. We will keep you updated with any further developments.


For specialist legal advice regarding employee pay, please contact Ellie Boyd in our Employment Law team on 020 7665 0940, or complete the below form.

 

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