The Government has announced increases to minimum pay levels. These increases will come into effect on 1 April 2020 and will be mandatory from that date. The new rates are set out below:
- A 6.2% increase from £8.21 to £8.72 for over 25 year olds
- 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
This is likely to be the first of several significant increases to minimum pay levels. The Conservative Party Election Manifesto indicated an intention to increase the National Living Wage to £10.50 an hour by 2024 and to extend it to all those over 21.