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Minimum Wage set to increase

Almost 3 million workers in Britain are set to receive a pay rise of more than four times the rate of inflation from April, after the Government said it will be increasing the National Minimum Wage.

The increased rates were recommended by the Low Pay Commission, an independent body that advises the government about the National Living Wage and the National Minimum Wage.

The National Living Wage for 25 and over will increase 6.2% from £8.21 to £8.72.

The National Minimum Wage will rise across all age groups, including:

  • A 6.5% increase from £7.70 to £8.20 for 21-24 year olds
  • A 4.9% increase from £6.15 to £6.45 for 18-20 year olds
  • A 4.6% increase from £4.35 to £4.55 for Under 18s
  • A 6.4% increase from £3.90 to £4.15 for Apprentices

The Government has described this as the “biggest ever cash boost” and said that “hard work should always pay”.

The increase will take effect from 1 April 2020.

Comment

Anyone who is engaged as an employee or worker must get the national minimum wage or national living wage.

Failing to pay the National Minimum Wage can lead to penalties of up to 200% of any shortfall, capped at £20,000 per employee. It can also lead to being named and shamed. Alternatively, workers can bring claims directly for any shortfall.  In the worst cases, particularly where there has been deliberate wrongful behaviour by the employer, criminal sanctions and penalties can be meted out.

If you have any queries in relation to National Minimum Wage or any other HR queries please contact our employment team on 01228 552600 or 01524 548494.

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