The government has announced new rates for the National Minimum and Living Wage across all age groups. The National Living Wage has the biggest increase to date of 6.2% compared to 2019’s rate, rising from £8.21 to £8.72 per hour. This pay rise will mean that a full-time worker over the age of 25 will take home approximately an extra £930 a year. Other age groups will see a significant pay increase too, with increases between 4.6% to 6.5%.
These new rates will see a pay increase for nearly 3 million people across the UK, so if you adopt these minimum wages, it is vital that you plan ahead as you may need to find ways of covering these payroll costs. You may need to raise your prices, improve your gross profit margins or revise staffing schedules to reduce staff hours where possible.
We have detailed the hourly rate increases in the table below:
If you have any questions or need more clarification about the new rates, give our payroll team a call on 01937 543 288 or email us.