At the end of 2019, the UK government declared significant hikes in the National Minimum Wage (NMW) effective from April 2020, marking what has been described as the largest financial elevation for UK employees. Projections indicate that these increases will provide full-time workers an additional annual income of around £930.
With the introduction of this legislation, employees aged 25 and above who qualify for the National Living Wage (NLW) will now earn £8.72 per hour, up from the previous rate of £8.21 per hour.
Furthermore, the wage for those aged between 21-24 will rise from £7.70 to £8.20 per hour. Meanwhile, younger employees aged 18 to 20 will see their wages go up from £6.15 to £6.45 per hour.
Employers need to comply with these new wage rates to avoid legal repercussions, including possible claims for illegal wage deductions. The government also holds the authority to impose penalties amounting to 200% of the due wages per affected worker.
Due to these legislative changes coming into effect in April 2020, our clients might experience an escalation in labour costs on our end to accommodate the salary increases.
ICS Cleaning’s Managing Director, Christine Turner, acknowledges the dual impact of these changes, recognising the benefit of increased wages for employees but also noting the consequent rise in operational costs for the company. “While our employee wages are set to rise, which is good news for them, this adjustment will inevitably lead to a spike in the operational expenses for our company. We might need to adjust our service charges accordingly, though we’re exploring ways to mitigate this through savings on our cleaning products”.
Christine further advised clients, “For those of you seeking clarity on the new legislation and its impact, our team is ready to provide support or guidance. We encourage you to get in touch with us for more information”.
She also recommended that businesses start preparing for the changes ahead, Even though there’s still time before the new rates are applied, it’s wise for all businesses to understand how these changes will affect them.
For further assistance, you’re encouraged to reach out to us by calling 01482 226 570, or by emailing info@ics-cleaning.com.
