National Minimum Wage And Other Statutory Rates Set To Increase

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The government has published proposed new statutory rates for 2020.

The national minimum wage will rise on 1 April 2020. The national living wage rate, which is for workers over 25, will increase from £8.21 to £8.72 per hour.

Meanwhile, other elements of the national minimum wage are set to increase:

  • for workers aged 21 – 24, the hourly rate will rise to £8.20;
  • for workers aged 18 – 20, the hourly rate will rise to £6.45;
  • for workers aged between 16 – 17, the hourly rate will rise to £4.55; and
  • the minimum wage for apprentices will increase to £4.15.

The government has promised that the national living wage will hit two-thirds of median earnings over the next five years. Based on current estimates, this would mean a rate of roughly £10.50 in 2024.

The government has also recently published its proposed statutory rates for various family-friendly benefits.

From 5 April 2020, the rates of statutory maternity pay, statutory adoption pay, statutory paternity pay, and statutory parental pay are set to rise from £148.68 per week to £151.20 (or 90% of the employee’s average weekly earnings, if lower).

In the case of statutory adoption pay and maternity pay, the standard rate applies after the first six weeks of leave have been paid at 90% of the employee’s normal weekly earnings.

Meanwhile, the rate of statutory sick pay will increase from £94.25 to £95.85 per week on 6 April 2020.

The publication of the new rates will allow HR personnel to plan their budgets in advance of April for 2020/21 to ensure compliance, and to update their policies and other documents on family benefits.

If you have any questions about the changing rates, please do not hesitate to contact our expert employment team on 0161 941 4000 or by email.