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National Minimum Wage 2020 (April Increases!)

National minimum wage

National minimum wage rates are set to increase with effect from April 2020.

The new rates will be as follows:

Age2020 rate 2019 rate Increase (%)
25 years and over£8.72£8.216.2%
21 years to 24 years£8.20£7.706.5%
18 years to 20 years£6.45£6.154.9%
Under 18 years£4.55£4.354.6%
Apprentice£4.15£3.906.4%

 

The Government has reported that the above figures reflect a pay rise for approximately 2.8 million people, meaning an annual rise per full time worker of up to £930.00.

The increased rates were recommended by the Low Pay Commission, an independent body that advises the Government on the matters of the National Living Wage and the National Minimum Wage.

 

Statutory payments

Statutory payments are set to increase from April 2020, according to a recently published government policy paper.

Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP), Statutory Shared Parental Pay (SShPP) and Maternity Allowance (MA) will increase from £148.68 to £151.20 per week, or 90% of the employee’s weekly earnings if that amount is lower than the statutory rate.

Statutory Sick Pay (SSP) will increase from £94.25 to £95.85 per week.

The weekly lower earnings limit threshold below which there is no entitlement to SMP, SPP, SAP, SShPP and SSP (currently £118.00 per week), will be confirmed at a later date.

 

Employer solutions 

As a team of employer solutions lawyers, our employment law experts are on hand to answer any questions you may have about the changes in the national minimum wage or statutory entitlements. For specialist employment law advice, speak to us.

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