The National Minimum and Living Wage will increase from 01 April 2020, the Government has confirmed.
Under approved plans, the National Living Wage (NLW) - for workers over the age of 25 - will rise by 6.5 per cent from £8.21 to £8.72 per hour.
This represents a rise four times the national rate of inflation, the Government has claimed, handing each full-time worker an additional £930 in income each year.
The rates for under 25s and apprentices, meanwhile, will increase from between 4.6 to 6.4 per cent.
National minimum wage rates from April 2020
|
Year
|
25 and over
|
21 to 24
|
18 to 20
|
Under 18
|
Apprentice
|
|
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
|
The new rates, recommended by the Low Pay Commission, fall in line with plans to raise the legal minimum wage to two-thirds of median earnings by 2024, which would place wages at around £10.40 per hour.
Commenting on the announcement, Chancellor of the Exchequer, Sajid Javid, said: “We want to end low pay and put more money in the pockets of hard-working families. This latest rise will mean that since we introduced the National Living Wage in 2016, the lowest paid will have had a wage increase of more than £3,600.”
Business and Energy Secretary, Andrea Leadsom, added: “We want to make the UK the best place in the world to work and grow a business. Employment is at a record high and as well as investing to meet that ambition, we also want to make sure that people get to keep more of what they earn.”
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