6 January 2020

From 1 April 2020, the National Living Wage and the National Minimum Wage will be increasing, affecting hair salons, barbershops and beauty salons across the country. 

Here are the new National Minimum Wage (NMW) and National Living Wage (NLW) rates that apply from 1 April 2020:

From April 2020

NLW (OVER 25s)

£8.72 PH

NMW AGE 21 - 24

£8.20 PH

NMW AGE 18 - 20

£6.45 PH

NMW AGE 16 - 17

£4.55 PH

*APPRENTICES

£4.15 PH

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

Hilary Hall, NHBF chief executive said: “We can expect higher than inflation increases over the next 5 years given the government’s aim to raise rates to around £10.50 ph"

The NHBF is also sending an early warning to salon and barbershop owners that from April 2021, the National Living Wage will apply to those aged 23 and over (NLW currently applies to those aged 25 and above). The government also intends to reduce this further to anyone aged 21 and over by 2025.

Hilary Hall, NHBF chief executive said: “We can expect higher than inflation increases over the next 5 years given the government’s aim to raise rates to around £10.50 ph. No doubt this will put further pressure on salon finances as wages are such a high proportion of costs for service industries like salons. We will continue to work with government to ensure they support small businesses such as those in our sector during this increase.”

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.

To find out more about NMW/NLW, visit www.nhf.info/nmw-rise. Additionally, the NHBF’s free 24/7 helpline for Members can provide helpful advice on payroll, tax and VAT as well as employing and managing people in line with the National Minimum Wage or National Living Wages increases.