• John Massey

National Minimum Wage rise from April 2020

Updated: Sep 9

National Minimum Wages rates

National Living Wage (NLW) rates (for those over 25 years old) and National Minimum Wage (NMW) rates (for those under 25 years old) will rise from 1 April 2020.

The NLW increase of 51p represents a 6% rise, equivalent to an annual increase of around £930 for a full-time worker.

In summary and effective 1 April 2020 the following minimum wage rates will apply:

Plan ahead

Ensure your payroll procedures are up to date, and consider notifying staff ahead of time in writing (even via a note on their payslip). This transparency is likely to be well received and could help build positive employee relations. It also offers an opportunity to explain that any overtime worked during a pay reference period prior to the introduction of the new rates, which is payable after these have been introduced, will still be paid at the previous rate. For further details and more rates visit gov.uk

Pension contribution rates

If you employ staff and run a pension scheme, the minimum contributions rates remain the same with no more planned increases:

  • Employer minimum pension contribution 3%, staff contribution 5%.

Would you like help to pay less tax? Feel free to get in touch or check out our related posts 👇

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