Coronavirus News: National minimum wage increases

Friday April 3, 2020

Although coronavirus has dominated our news and updates of late, we wanted to make sure that you remain aware of some other very important HR matters that concern your business.

We have previously shared information regarding The Good Work Plan legislative changes that will be taking effect this month and will be releasing further information as and when applicable.

Additionally, we wanted to bring to your attention that both the National Minimum Wage and National Living Wage are increasing from today. The new rates are as follows:

  • National Living Wage for 25 and over £8.72
  • National Minimum Wage for 21 – 24 £8.20
  • National Minimum Wage for 18 – 20 £6.45
  • National Minimum Wage for school leavers under 18 £4.55
  • Apprentice Minimum Wage for 18 – 20 £4.15

We have had some questions regarding the National Minimum Wage (NMW) increase and how this may affect furloughed employees. HMRC states that NMW only applies to hours worked. As furloughed employees are not working, they are not entitled to NMW whilst on furlough. However, if they are required to complete training during furlough, they are entitled to NMW/NLW for the time spent training so the employer will need to top the payment up.

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