National Minimum Wages rates
National Living Wage (NLW) rates (for those over 25 years old) and National Minimum Wage (NMW) rates (for those under 25 years old) will rise from 1 April 2020.
The NLW increase of 51p represents a 6% rise, equivalent to an annual increase of around £930 for a full-time worker.
In summary and effective 1 April 2020 the follow minimum wage rates will apply
|Year||25 and over||21 to 24||18 to 20||Under 18||Apprentice *|
|April 2020 (new rates)||£8.72||£8.20||£6.45||£4.55||£4.15|
* The apprentice rate is for apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the National Minimum Wage for their age.
Ensure your payroll procedures are up to date and consider notifying staff ahead of time in writing (even via a note on their payslip). This transparency is likely to be well received and could help build positive employee relations. It also offers an opportunity to explain that any overtime worked during a pay reference period prior to the introduction of the new rates, that is payable after these have been introduced, will still be paid at the previous rate. For further details and more rates visit gov.uk
Pension contribution rates
If you employ staff and run a pension scheme the minimum contributions rates remain the same with no more planned increases:
- Employer minimum pension contribution 3%, staff contribution 5%.
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