If you are an employer, you may be affected by the changes to the National Living Wage (NLW). These come into effect from 1 April 2020. The hourly rate for the minimum wage depends upon an employee’s age and whether they’re an apprentice.
Firstly, The main rate for employees 25 and over is increasing from £8.21 p/h to £8.72 p/h.
Secondly, the rate for employees aged between 21 and 24 is increasing from £7.70 p/h to £8.20 p/h.
Thirdly, the rate for employees aged between 18 and 20 is increasing from £6.15 p/h to £6.45 p/h.
Fourthly, the rate for employees aged under 18 is increasing from £4.35 p/h to £4.55 p/h.
Fifthly, the apprentice rate is increasing from £3.90 p/h to £4.15 p/h (*).
(*) apprentices are entitled to the apprentice rate if they are either aged under 19, or aged 19 or over and in the first year of their apprenticeship. Additionally, apprentices are entitled to the minimum wage for their age if they are aged 19 or over, and have completed the first year of their apprenticeship.
Further information about the NLW can be found here.
If you are an employer and need help with running your payroll, please do not hesitate to contact us.