Minimum Wage Increase 2020

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HM Government has announced it will increase minimum wage rates by 4 times inflation. 

Employees over 25 are set to receive a 6.25% pay rise , an increase of £930 per year for a full time worker. This increase will apply from the first pay reference period that starts on or after 1 April 2020. 

The Government accepted the increased rates recommendations from the Low Pay Commission – an independent that advises government about the National Living Wage and National Minimum Wage. 

The Chancellor has also announced plans to decrease the age for the National Living Wage from 25 to 23 from April 2021 and further to 21 within 5 years. 

National Minimum Wage & National Living Wage (UK)

The National Minimum Wage and National Living Wage applies to almost all workers in the UK. This is the minimum you can pay per hour. 

25 and over£8.21£8.72
21 to 24£7.70£8.20
18 to 20£6.15£6.45
Under 18£4.35£4.55

Apprentices are entitled to the apprentice rate of the National Minimum Wage if they are either under 19 or 19 and over and in the first year of their apprenticeship

Apprentices over 19 who have completed the first year of their apprenticeship are entitled to the National Minimum Wage for their age.

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The Chancellor has announced that the Government will accept the recommendations on the Low Pay Commission in full and increase the National Living Wage to £8.91 per hour from April 2021.


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