In late 2019 the government announced increases to the National Living Wage (NLW) scheduled for April 2020. This represents the ‘biggest ever cash boost’ by the government for UK workers. Estimates reveal that these adjustments could benefit full-time workers with a pay rise of approximately £930 per year.
Under the new legislation, if an employee is aged 25 or over and eligible for the National Living Wage (NLW), they will be entitled to receive £8.72 per hour under the new rules. This is an increase from £8.21 per hour previously.
The living wage rates for employees aged between 21-24 years old will see their hourly rate increase from £7.70 to £8.20 per hour. Additionally, the rate for employees aged between 18 and 20 years old will increase from £6.15 to £6.45 per hour.
Employers must pay staff the correct rates as any errors could result in claims for unlawful deduction of wages. Furthermore, the UK government has the power to issue financial penalties of up to 200% of the arrears owed to each worker.
From April 2020, as a result of these changes, the businesses we work with will face higher labour costs from us to reflect the increase in staff salaries.
Christine Turner, Managing Director of ICS Cleaning said, “Obviously this is a positive for our employees as it means a boost to their income, however, it will result in a significant increase to our costs as a company. Because of this, the amount we currently charge our clients may increase. But we’re offering guaranteed savings on our cleaning products to offset this as much as we can.”
Christine added, “I would say to our clients that if you’re unsure about the new legislation and how the changes will affect you then please get in touch with us. We are on hand to support or signpost anyone who is unsure of the changes.”
“Whilst there is still plenty of time until the new rates are introduced, I would suggest all businesses should look into what the changes mean for them.”
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