Less than one month since being re-elected Prime Minister, the Johnson government has announced a rise of 6.2% in the national living wage, the largest cash rise ever since the introduction of the National Minimum Wage in 1997.
What are the new minimum wage rates?
| Year | 25+ | 21-24 | 18-20 | < 18 | Apprentice |
| April 2019 (current year) | £8.21 | £7.70 | £6.15 | £4.35 | £3.90 |
| April 2020 | £8.72 | £8.20 | £6.45 | £4.55 | £4.15 |
What does this increase mean?
This increase is almost four times the level of the consumer price index (CPI) gauge of inflation which was 1.5% in November. The Chancellor has indicated that this significant increase will provide an additional £930 per annum to approximately three million full time workers. Whilst a cash increase may appear beneficial for workers, there is an obvious downside. If businesses are not able to pay this increased sum to all their workers, there is a risk that recruitment may decrease and some companies may need to consider redundancies to allow for sufficient cash flow.
Further, some businesses have indicated that this increase puts further pressure on cash flow and budgets.
It is worth noting that Boris Johnson pledged to increase the minimum wage to £10.50 per hour by 2024, in his lead up to the December 2019 General Election.
Should my employer be paying me the minimum wage?
In short, yes, although there are some situations and professions where the minimum wage is not applicable.
If you feel that you are not being paid the minimum wage, please contact our Employment Team on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.