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:
- Warehouse Operative
- Cleaner
- Security Guard
- Shop Assistant
- Food Preparation Worker
- Customer Service
- Receptionist
- Order Filler
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.