New National Minimum Wage* rates come into effect in the UK on 1 April, 2020.Low-paid workers will receive a 6.2% pay rise with a new National Living Wage (NLW) of £8.72 per hour, the biggest cash increase ever, according to the UK government.
Nearly three million workers are set to benefit from the increase and the National Minimum Wage* (NMW) rates for workers under 25, according to estimates from the independent Low Pay Commission. The rise means government is on track to meet its current target for the NLW to reach 60% of median earnings by 2020.
The new rate starts on 1 April, 2020 and results in an increase of £930 over the year for a full-time worker on the National Living Wage. Younger workers who receive the National Minimum Wage will also see their pay boosted with increases of between 4.6% and 6.5%, dependant on their age, with 21-24 year-olds seeing a 6.5% increase from £7.70 to £8.20 an hour.
The new rates are:
- for ages 25 and above, £8.72 (increase of 6.2%);
- for ages 21-24, £8.20 (increase of 6.2%);
- for ages 18-20, £6.45 (increase of 4.9%);
- for under 18s, £4.55 (increase of 4.5%);
- for apprentices, £4.15 (increase of 6.4%).
*The National Minimum Wage applies to workers under 25 years of age. The National Living Wage applies to workers over 25.