robbryanassociates

2020 Minimum Wage Increase & Updates to Holiday Pay

In contracts, government, holiday, pay on January 16, 2020 at 10:45 am

With the Autumn Budget held back by December’s General Election, an announcement of the new minimum wage rates was made on New Year’s Eve.

National Living Wage for 25-year olds will increase from £8.21 to £8.72 representing an increase of 6.2%. The Treasury has said that the increase equated to an increase in gross annual earnings of around £930 for a full-time worker on the current minimum rate.

The new rates are recommended by the Low Pay Commission, an independent body that advises government on the national living wage and national minimum wage.

The Government has pledged to increase the National Living Wage to £10.50 by 2024 but has added a caveat allowing for economic conditions.

The changes don’t come into effect until April 2020 but with the rise being significant, businesses which pay at or near the NMW will need to budget accordingly.

The table below gives the all detail by age bracket along with the new annual salary for employees across a range of full-time hours.

Min Wage table

Chancellor Savid Javid will announce his first budget (Spring Statement) on March 11th which will contain further updates to statutory rates.

Holiday Pay
New regulations will take effect from April 2020 to ensure workers in seasonal work or with abnormal working hours receive the paid holiday to which they are entitled.

If a worker has been employed by their employer for at least 52 weeks, the holiday reference period is expanded from 12 weeks to 52 weeks. Where the employment has been for less than 52 weeks, the holiday reference period is the number of weeks for which the worker has been employed.
If you need guidance on any of the above, please get in touch with your consultant or contact the Rob Bryan Associates office: 01462 732444 www.robbryanassociates.org.uk

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