The National Minimum Wage Increases In April
Do you know what you should be paying?
POSTED BY ALISON MEAD ON 23/03/2020 @ 8:00AM
Although the Coronavirus outbreak is affecting the economy, legislation keeps on moving forward and on the 1st April 2020, the National Minimum Wage and National Living Wage rates for all age bands and for apprentices will increase ...
Is your payroll ready for the National Minimum Wage or National Living Wage increases in April?
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The hourly rate for the minimum wage depends on your age and whether you’re an apprentice. Workers must be between school leaving age and 24 to receive the National Minimum Wage and aged 25 to get the National Living Wage.
Apprentice rates are payable when they are under 19, or over 19 and in the first year of their apprenticeship. So for example, an apprentice aged 22 in the first year of their apprenticeship is entitled to a minimum hourly rate of £3.90.
Contracts for payments below the minimum wage are not legally binding. Remember, the worker is still entitled to the National Minimum Wage or National Living Wage.
Workers are also entitled to the correct minimum wage if they are:
casual labourers, for example someone hired for one day
workers and homeworkers paid by the number of items they make
trainees, workers on probation
You can discover who is and isn't eligible by clicking here and a summarised version of the rates table is shown below, with the current rates as well as the new 2020 rates included.
The Government also has a minimum wage calculator available so you can understand if the National Minimum Wage or National Living Wage should be paid.
Until next time ...
Would you like to know more?
If you need help getting your payroll up to date with the new rates, or maybe want to book a training session to learn more about your Sage or Xero bookkeeping system, do give me a call on 01604 420057, leave a comment below or use the Messenger tool you can see in the bottom right of your screen to chat right now.
About Alison Mead ...
Alison loves bookkeeping. She has been helping clients to be better bookkeepers in Sage 50 for over 22 years and has more recently added Xero Accreditation to her list of skills.
She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.
Alison combines her role at Silicon Bullet with running two network marketing businesses and is also a Regional Leader for 4Networking as she likes to keep busy.
You know what they say, if you want something done well ask a busy person!
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