Forget savings rates or ISA interest, your income could be set for a boost this year without you having to take any action.
The national living wage (NLW) and national minimum wage (NMW) rates for younger workers is set to increase this April.
The NLW for over 25-year olds will increase 6.2% from £8.21 to £8.72 per hour from April 2020- the largest ever cash increase.
The NMW will rise across all age groups, including:
- A 6.5% increase from £7.70 to £8.20 for 21-24 year olds
- A 4.9% increase from £6.15 to £6.45 for 18-20 year olds
- A 4.6% increase from £4.35 to £4.55 for under 18s
- A 6.4% increase from £3.90 to £4.15 for apprentices
The new rate starts on 1 April 2020 and results in an increase of £930 over the year for a full-time employee working 35 hours a week on the National Living Wage.
There are also plans to increase the NLW further to £10.50 by 2024.
Having some extra money in your paypacket sounds great and gives you more to spend on luxuries, lunch breaks or after-work drinks, but that extra £930 a year could also go a long way if saved or invested properly.
It could give you extra funds to finally start on your ISA or pension saving journey or even put money away for a house deposit.
Speak with your financial adviser about how to make your extra pay stretch further.
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