The National Minimum Wage in 2020
01 April 2020
The Government have set a new target for NLW to achieve a rate of two-thirds of median earnings by 2024 however, in their report, the Low Pay Commission (LPC) acknowledge the high level of uncertainty on the current state of the economy, due to the effects of the COVID-19 outbreak. As a result, they have chosen not to publish an indicative path for the future National Living Wage rates up to 2024.
The LPC are keen to hear the experiences of workers and employers alike during their consultation.
Bryan Sanderson, Chair of the Low Pay Commission, said:
“Many of the nation’s key workers – in, for example, the care sector, agriculture, transport and retail – are low-paid, are continuing to work in very difficult conditions and will benefit from today’s increase. At the same time, the Government has introduced a comprehensive package of support for employers to lessen the impacts of these extraordinary circumstances.
Under our new remit, the Government asks us to monitor the labour market and the impacts of the National Living Wage closely, advise on any emerging risks and - if the economic evidence warrants it – recommend that the government reviews its target or timeframe. This is what the Government refers to as the ‘emergency brake’. The ongoing COVID-19 pandemic clearly represents a very challenging set of circumstances for workers and employers alike and will require us to review whether the emergency brake is required when we next provide our advice to the Government. This advice will be crucially dependent as always on the economic data we receive.”
Rates for pay reference periods that begin on or after 1 April 2020:
National Living wage £8.72
21-24 Year Old Rate £8.20
18-20 Year Old Rate £6.45
16-17 Year Old Rate £4.55
Apprentice Rate £4.15
Accommodation Offset £8.20