National Living Wage - April 2020 increases

07 Jan
2020

On New Year’s Eve the government announced increases to the National Minimum Wage (NMW) and National Living Wage (NLW) rates  to take effect from April 2020.  The new rates have been recommended by the Low Pay Commission, and have now satisfy the target set by the Government in 2015 of the NLW equalling 60% of median earnings by 2020.

The new rates will be as follows:

Category

Current Hourly Rate

New Hourly Rate (April 2020)

Percentage increase

NLW for ages 25 and above

 

£8.21

£8.72

+6.5%

NMW for 21-24 year olds

 

£7.70

£8.20

+6.5%

NMW for 18-20 year olds

 

£6.15

£6.45

+4.9%

NMW for under 18s

 

£4.35

£4.55

+4.6%

For Apprentices

 

£3.90

£4.15

+6.4%

Accommodation Offset**

£7.55

£8.20

+6.4%


** The Accommodation Offset is an allowable deduction from wages for accommodation, applicable for each day of the week.

Law correct at the date of publication.
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