W1siziisijiwmjavmdivmduvmtevmtivntqvotmvtk1xigfuzcbotfcgsw5jcmvhc2ugmjaymcbbiff1awnrifjlywqgzm9yiehpcmvycy5qcgcixsxbinailcj0ahvtyiisijiwmdb4nzawiyjdxq

Blog

NMW and NLW Increase 2020: A Quick Read for Hirers

Legislation & Regulation, Hiring Budget

Matthew Dann Thorn Baker Industrial Recruitment DirectorBoth the National Minimum Wage and the National Living Wage will be seeing its biggest rise in April this year. As a busy Hiring Manager, you’ll need a quick summary of the changes and how this could affect your business – this is the blog for you.

Matthew Dann: Thorn Baker Industrial Recruitment Director

Overview

The new rate starts on 1 April 2020 and nearly 3 million workers will benefit from the increases to the NLW and NMW rates for younger workers. 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.

NMW and NLW Increases in 2020

The Government has confirmed that:

  • The National Living Wage (for over 25-year-olds) will increase by 6.2% from £8.21 to £8.72.
  • The National Minimum Wage will rise across all age groups, including:


Age

Current

From April 1st 2020

Increase %

Over 25 year olds

£8.21

£8.72

6.2%

21-24 year olds

£7.70

£8.20

6.5%

18-20 year olds

£6.15

£6.45

4.9%

Under 18’s

£4.35

£4.55

4.6%

Apprentices

£3.90

£4.15

6.4%







April 1st Falls Mid-Week – How Will That Work?

Thorn Baker Group Payroll Manager Emma CraigThorn Baker Group's Payroll Manager Emma Craig has confirmed that It will be payable on the next ‘pay reference period’. So if you run a weekly payroll (this will be most likely if you hire temporary workers) the NWM and NLW will apply as follows:

  • The pay reference period will start on the 4th of April if your week runs Saturday to Friday or the  6th April if your week runs Monday to Sunday
  • First payment where the worker receives their increased wage will be the 17th of April

You can read more about this from Acas here


​How Will This Effect Businesses?

Personnel TodayIn a report from Personnel Today Matthew Fell, CBI Chief UK Policy Director said that although business shared the ambition for a higher wage economy, affordability was a key issue:

 “While it’s the right thing to do and many workers will feel the benefit, some firms will find this rise challenging in the face of tough economic conditions.

“It’s vital that the Low Pay Commission has the full range of tools at its disposal to judge the evidence base, pace and affordability for any future rises to ensure the UK’s successful job creation story continues into the coming decade.”


We're holding NMW & NLW consultations in your area free of charge! 

If you’d like to discuss further how these changes will apply to your current or future supply of temporary workers you can book an appointment with your local branch right here.