Significant rise

The government has announced a 6.2% rise in the national living (NLW) and national minimum wage (NMW) rates to take effect on 1 April 2020. Make sure that your payroll manager takes account of the increases by adjusting the rates in your payroll software, where applicable.

Rates

From 1 April the NLW for employees aged 25 and over rises from £8.21 to £8.72 per hour. The changes to NMW hourly rates are:

employees 21 to 24, from £7.70 to £8.20
employees 18 to 20, from £6.15 to £6.45
employees 16 to 17, from £4.35 to £4.55 .

For apprentices who are 18 or younger and those in the first year of their apprenticeship, the hourly minimum rate changes from £3.90 to £4.15 .

All the minimum wage rates increase from 1 April 2020 by 6.2%. Make sure that your payroll manager is aware and software is updated to take account of the changes.