Reminder: legal minimum wage to increase from April 2020

The Federation of Small Businesses (FSB) has reminded employers that a planned hike in the National Minimum Wage (NMW) is still going ahead as planned, despite businesses feeling the financial impact of the Covid-19 outbreak.

From 01 April 2020, the legal minimum wage for workers over the age of 25 will be increased from £8.21 to £8.72 per hour, while the minimum wage for workers aged between 21 and 24 will rise from £7.70 to £8.20.

It was revealed earlier this month that the Government would continue to “name and shame” employers who failed to pay the NMW. Under the scheme, the names of employers and the amount of underpayment are posted on a public GOV.UK domain. Underpayment of the legal minimum wage also attracts penalties of up to 200 per cent plus interest.

According to the latest figures, HM Revenue & Customs (HMRC) identified £24.4 million in arrears for over 220,000 workers in 2018/19, attracting record penalties totalling over £17 million.

It is unknown how the coronavirus pandemic will impact on this policy.

Find the full schedule of NMW increases below:

National minimum wage rates from April 2020

Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice
April 2019 (current rate) £8.21 £7.70 £6.15 £4.35 £3.90
April 2020 £8.72 £8.20 £6.45 £4.55 £4.15


Commenting on the planned wage hikes, the FSB said: “Make sure you check all relevant rates and update your pay roll to ensure your staff are paid correctly.”

The association also warned employers to take notice of scheduled statutory, holiday and sick pay increases, which are set to come into effect from April.

For help and advice complying with minimum wage rules, get in touch with our expert team today.

Posted in Business, Economy, Employment Law, Payroll.