National Living & Minimum Wage increases from 1 April

From 1 April 2020, the National Living Wage and the National Minimum Wage has increased, affecting beauty salons across the country.

The new National Living Wage (NLW) and National Minimum Wage (NMW) rates are as follows:

• NLW (Age over 25s) – £8.72 per hour
• NMW (Age 21 – 24) – £8.20 per hour
• NMW (Age 18 – 20) – £6.45 per hour
• NMW (Age 16 – 17) – £4.55 per hour
• Apprentices* – £4.15 per hour

*An apprentice over the age of 19 who is in the second year of their apprenticeship must be paid the appropriate NMW/NLW.

The increase has gone ahead despite financial implications on businesses owing to the COVID-19 outbreak. Hilary Hall, chief executive, of the NHBF, the trade body for those in the hair, beauty & barbering sectors, comments: “We understand that businesses and individuals are under financial pressures that no-one has ever experienced before. The timing of the rises for NMW/NLW is far from ideal in the current circumstances. 

“However, at least they will give a small increase to support stylists, barbers and beauty therapists at this difficult time.  Most of them are receiving 80% of their wages so they will be struggling financially. We will be asking the Low Pay Commission to consider the timing and size of future rate rises depending on how the economy responds once the coronavirus situation has ended.”

From April 2021, the National Living Wage will apply to those aged 23 and over (as opposed to the current age of 25 and above). The government also intends to reduce this further to anyone aged 21 and over by 2025.

The NHBF urges employers to check staff will be paid at the right rates and also to take advice before making any deductions from wages. Employers can be fined £20,000 for each employee who is not paid the correct amount and could also be publicly named and shamed by the government.

For more information about the National Living Wage and the National Minimum Wage, visit www.nhbf.info/nmw-rise