National Minimum Wage & Living Wage – April 2020
Most of you are probably aware that the national minimum wage changed from the 1st April 2020
What does this mean?
If you are an employer it is your responsibility to ensure that all staff members are paid at the national minimum/living wage for their age.
If they are not it could be costly to you as an employer.
What should I do?
Firstly, check that all staff are on at least minimum wage for their age bracket. Extra care should be taken whilst checking salaried staff against their contracted hours to ensure they are receiving the correct basic minimum wage. There are exceptions to this rule, and so it is advisable to be vigilant during this transition. If you are unsure or would like to discuss these changes in further detail please do get in touch.
What are the rates?
Minimum/Living Wage from 1st April 2020
These rates are for the National Living Wage and the National Minimum Wage. The rates change every April.
|Year||25 and over||21 to 24||18 to 20||16 to 17||Apprentice|
Apprentices are entitled to the apprentice rate if they’re either:
- aged under 19
- aged 19 or over and in the first year of their apprenticeship
What is the difference between the National Minimum Wage and the National Living Wage?
The National Living Wage relates to anyone 25 or over unless they are in their first year of an apprenticeship scheme.
When do I actually make the change?
HMRC guidance is that the change should be implemented from 1st April, so the new pay rate will only affect someone’s pay from the first full pay reference period after that date.