Under Two Months Until the NMW Increase Means a Pay Rise for Millions
  • By Check-a-Salary
  • Posted Sunday 16 th February 2020

Under Two Months Until the NMW Increase Means a Pay Rise for Millions

It has been widely reported that the National Minimum Wage and National Living Wage is increasing for millions. It is also expected that tax cuts (this, of course, could change with the expected budget in March 2020) will be coming into effect on the 6th of April 2020.

As a reminder, the changes to the NMW/NLW are:

 

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

 

It is expected from April 2020 that the following tax thresholds will also be changing to:

Year

Income Tax (£)

National Insurance (£)*

April 2019 (current rate)

12,500

8,632

April 2020

12,500**

9,500

* Not payable once you are of state pension age. **This threshold is expected to be adjusted inline with inflation.

As you can see the National Insurance threshold is expected to increase by 10%. This equates to around £104 a year.

Someone on the NLW, working 40 hours and is over 25, from April 2020 will be £1164 a year better off from April 2020.

Below are a list of jobs which are typically paid at the National Minimum Wage:

A HR Manager will need to make sure that you are being paid the correct salary, especially if you are on a lower rate due to your age. In the month where you hit the next threshold, you should see a pay rise, if not, you are being paid below the national living wage.



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