NATIONAL MINIMUM WAGE INCREASE FROM 1 April 2020
The National Minimum Wage/National living wage is increasing from 1 April 2020 for all workers.
What is a worker?
Workers are anyone employed that are at least school leaving wage to get the National Minimum Wage and anyone aged 25 and over to get the National Living Wage.
What are the National Minimum Wage and National Living Wages Rates?
The new rates of pay should be applied to all workers on the pay reference period after 1 April 2020.
Pay Reference Periods
The pay reference period is the period in which you pay all of your workers and this could be weekly, fortnightly, 4 weekly or monthly.
if you pay your employees weekly for the period Saturday – Friday then the first pay reference period after 1 April 2020 would be 4 April 2020 – 10 April 2020.
If a worker has a birthday that would take them into the next rate of pay the increase in national living wage should take affect from the next pay reference period. So for example if you had and employee that turn 25 on 13 June 2020 and the pay period covered 1 June 2020 – 30 June 2020 they would receive their usual rate of pay for the period up to 30 June and receive the increase in the period that covers 1 July – 31 July.
The apprentice rate can be paid to all apprentices aged 16 – 18 and to apprentices that are aged 19 and over and in the first year of their apprenticeship. Apprentices aged 19 and over that have completed their first year are entitled to the appropriate minimum wage for their age.
The worker will be entitled to the new rate of pay from the day after they complete the first year of their apprenticeship or the day after their 19th birthday (if they have completed the first 12 months of an apprenticeship).
Who is not entitled to minimum wage?
There are several people that are not entitled to the national minimum wage and these are:
· Self-employed people,
· Company Directors
· Volunteers & voluntary workers
· Work Experience or placement students
· Family members working for a family business
It is the employers’ responsibility to ensure that all workers are paid the correct rate of pay in each pay reference period. Failure to do so could lead to penalties of up to 200% of the arrears.