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You are here: Home » Latest News » National Living Wage to rise in April 2019

National Living Wage to rise in April 2019


In his latest Budget speech to the Commons, Chancellor Philip Hammond announced that the National Living Wage and National Minimum Wage would increase from April next year.

However, despite many employees across the UK welcoming this sudden pay rise, small business owners across the UK are being left to pick up the bill.

From April 2019, employers will be required by law to pay their employees the following minimum wages:

Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice
Current rate £7.83 £7.38 £5.90 £4.20 £3.70
April 2019 £8.21 £7.70 £6.15 £4.35 £3.90

It is thought this increase in the UK’s statutory wage requirements will benefit around 2.4 million workers and means that the annual earnings of a full-time minimum wage worker will have increased by over £2,750 since the introduction of the National Living Wage in April 2016.

For businesses though the increase in the wage has not only affected their wage bill but has also led to an increase in their workplace pension contributions for staff.

With workplace pension contributions set to rise yet again in April 2019 to three per cent, this double whammy of costs is likely to affect their cashflow if they are unprepared.

The Government has said it will set out the Low Pay Commission’s goal for the years beyond 2020 next year, with a view to reviewing the potential impact on employment and economic growth of subsequent wage increases.

Link: National Minimum Wage and National Living Wage rates

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