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National-Living-Wage

National Living Wage set to increase from April

The Government will introduce increases to the National Living and Minimum Wage from April this year.

From this date the National Living Wage (NLW) will rise from £8.21 to £8.72 per hour and will mean that 2.8 million full-time workers will see a £930 boost to their annual earnings.

The Government claims that the introduction of the NLW, which is available to those aged 25 and over, has delivered the fastest pay rise for the lowest earners in 20 years.

From April workers who are paid the National Minimum Wage (NMW) will also see their pay increase. The table below outlines the new rates of pay:

Year 25 and over 21 to 24 18 to 20 Under 18 Under 18
April 2019 (current rate) £8.21 £7.70 £6.15 £4.35 £3.90
April 2020 £8.72 £8.20 £6.45 £4.55 £4.15

As well as increasing the NLW, the [former] Chancellor Sajid Javid said that the Government intends to expand the reach of the NLW to cover workers aged 23 and over from April 2021, and to those aged 21 and over within five years.

The rise in the NLW and NMW will also mean that employers will have to increase the amount they pay into a worker’s workplace pension and so it could have a significant impact on their employment costs.
If you are unsure of what rate of pay an employee should be receiving or have any other questions related to the NLW or NMW, please speak to our team.

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