Latest News

National Living Wage was introduced back in 2016. This was an enhancement to the National Minimum Wage for workers aged 25 and above. The National Living Wage is not compulsory for employers who have staff under the age of 25 as they can choose to extend the entitlement for them. However, the National Living Wage for workers aged over 25 is compulsory and if an employer chooses not to pay this then they could be taken to court by HMRC. 

Current Rates (April 2019):

• 25 and over = £8.21
• 21-24 = £7.70
• 18-20 = £6.15
• Under 18 = £4.35
• Apprentice = £3.90 (apprentices are entitled to minimum wage if they are aged 19 or over and if they have completed their first year of their apprenticeship)

New Rates (April 2020):

National Minimum Wage Increase:

• The adult rate (21-24) will increase from £7.70 to £8.20 per hour. (6.5% increase)
• The Youth Development Rate (18-20) will increase from £6.15 to £6.45 per hour. (4.9% increase)
• The Under 18 rate will increase from £4.35 to £4.55 per hour. (4.6% increase)
• The Apprentice Rate will increase from £3.90 to £4.15 per hour. (6.4% increase)

National Living Wage Increase:

• The National Living Wage for 25 and over will increase from £8.21 to £8.72 per hour. (6.2% increase)

Research from GOV.uk tells us that this is the biggest cash increase ever and nearly 3 million workers are set to benefit from the increase! The increase starts in 1st April 2020 and will result in and increase of £930 over the year for a full-time worker on National Living Wage. 

Penalties from the HMRC:

Non-payment can incur penalties of 200% of the amount owed but if you pay areers within 14 days then the maximum fine is up to £20,000 per worker. By not paying penalties, employers can also be banned from taking up positions as a Company Director and this can last for up to 15 years.

For more information please visit www.gov.uk