The new payroll year begins on 6 April 2020, which means that there are a range of new payroll rates for the national living wage and national minimum wage that employers need to be aware of in order to comply with statutory legislation and avoid the risk of fines, or worse, for non-compliance.
The new rates National Living Wage and National Minimum Wage Rates for 2020-21
- Age 25 & over increases from £8.21 per hour to £8.72 per hour
- Age 21 to 24 increases from £7.70 per hour to £8.20 per hour
- Age 18 to 20 increases from £6.15 per hour to £6.45 per hour
- Under 18s increase from £4.35 per hour to £4.55 per hour
- Apprentice rates increase from £3.90 per hour to £4.15 per hour*
(*Apprentices should be paid the apprentice rate if they are aged under 19 or if they are 19 and over and in the first year of their apprenticeship. An apprentice who is over 19 and has completed their first year of apprenticeship is entitled to the minimum wage rate for their age, rather than the apprentice rate).
If you are an employer, it is your responsibility to check the current hourly pay rate for each of your employees to ensure they are being paid the correct rate for their age now and when these increased rates come in. If not, you will need to increase their pay so that it meets the new hourly pay rate for their age from 6th April
Please remember that it is a criminal offence not to pay your employees the National Living Wage or National Minimum Wage. Penalties, or more, can be applied by HMRC, who have also named and shamed many companies for non-compliance.
Contact us or call us on 0121 422 0550 for help and advice on all payroll matters, including the National Minimum Wage and the National Living Wage.