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Minimum Wage and National Living Wage rates explained as 2020 ‘real’ Living Wage rises | Personal Finance | Finance

To get the National Minimum Wage, workers must be at least school leaving age. Meanwhile, for the National Living Wage, a person must be aged 25 or older.

There are various types of workers who are not entitled to either of these rates, all of which are detailed on the government website.

Furthermore, apprentices who are either under 19 or 19 or over and in the first year of their apprenticeship are entitled to the apprentice rate.

However, apprentices who are over the age of 19 who have completed the first year of their apprenticeship are entitled to the correct minimum wage for their age.

Earlier this year, the government announced increases to the rates for the NLW and NMW, with the rates changing every April.

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Currently, the National Living Wage is £8.72, up from £8.21 between April 2019 to March 2020.

The National Minimum Wage changed as follows:

21 to 24

Since April 2020: £8.20

April 2019 to March 2020: £7.70

18 to 20

Since April 2020: £6.45

April 2019 to March 2020: £6.15

Under 18

Since April 2020: £4.55

April 2019 to March 2020: £4.35


Since April 2020: £4.15

April 2019 to March 2020: £3.90

It’s possible to access a “National Minimum Wage and Living Wage calculator for workers” online, on the government website.


This can be used to check to see whether a person is getting paid the NMW or NLW, and to see whether an employer owes its employee from past payments from the previous year due to underpayment.

Elsewhere, the Living Wage Foundation today increased the “real Living Wage”, as the rates for 2020/21 were announced.

The “real Living Wage” is voluntarily paid by nearly 7,000 UK businesses.

The changes to these rates, which are voluntary rather than statutory, mean more than 250,000 people are set for a boost to their pay.

According to research by the Living Wage Foundation, 5.5 million employees (a fifth of employees) are still paid under the “real Living Wage”.

The UK real Living Wage rate has risen by 20 pence to £9.50.

Meanwhile, in London, there has been a 10 pence increase to £10.85.

The Living Wage Foundation says employers who pay the rates should implement the rise as soon as possible, and within six months.

It states all employees should receive the aforementioned increase by May 9, the following year.

Laura Gardiner, Living Wage Foundation Director, said: “It’s an incredibly challenging time for us all, but today’s new Living Wage rates will give a boost to hundreds of thousands of UK workers, including thousands of key and essential workers like cleaners, care workers, and delivery drivers who have kept our economy going.

“Since the start of the pandemic employers have continued to sign up to a real Living Wage.

“During Living Wage Week it’s right that we celebrate those employers that have done right by workers and families, providing them with much needed security and stability even when times are hard.

“These are the employers that will allow us to recover and rebuild from this crisis.”

Amid the increase, Owen, a Team Member of TTK Confectionary Nottingham, shared what being paid the “real Living Wage” rates mean to him.

He said: “The Real Living Wage has allowed me to pay my bills and save for the first time.

“I am saving for driving lessons and a car.

“I feel valued and appreciated and that my hard work and dedication has been recognised through the introduction of the Living Wage.”

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