National Minimum Wage Increase April 2020
Huge Minimum Wage increase for workers
National Minimum Wage increase April 2020 is set to rise more than 6% this year! This will undoubtedly put even more pressure on business owners. The new rates which have been described by the Government as “the biggest cash increase ever.” With effect from April 2020 the new rates will be:
- The National Living Wage for ages 25 and above – up 6.2% to £8.72
- The National Minimum Wage for 21 to 24-year-olds – up 6.5% to £8.20
- For 18 to 20-year-olds – up 4.9% to £6.45
- For under-18s – up 4.6% to £4.55
- For apprentices – up 6.4% to £4.15
Employers will need to amend their financial budget for the year ahead but at what cost? Such increases may well affect expenditure in a number of different areas which can include delaying investment in recruitment and training – all at a time of great economic uncertainty.
Of course there may well be benefits with increased wages; more so for those in poor or low income families. Such high increased wage levels could well be detrimental to the very people it’s set to help as employers may choose not to employ the low wage – low skill employees.