Minimum Wage

From 1st April 2020

£8.72 (age 25+)

£8.20 (age 21-24)

£6.45 (age 18-20)

£4.55 (under 18)

£4.15 (apprentices aged under 19 or over 19 in their first year of apprenticeship)

Previous Rates - From 1st April 2019

£8.21 (age 25+)

£7.70 (age 21-24)

£6.15 (age 18-20)

£4.35 (age 16-17)

£3.90 (apprentices who are under 19 or over 19 and in their first year of apprenticeship)

Pay Rates and Thresholds 2020-21

PAYE & NIC Rates

From 6th April 2020 to 5th April 2021

Emergency & Standard Tax Code - 1250L
Employees with a standard tax code can earn £1,042 per month or £240 per week tax free
20% tax is due on earnings between £12,501 and £37,500 per annum
40% tax is due on earnings between £37,501 and £150,000 per annum
45% tax is due on earnings over £150,000 per annum

Employer NIC is due on earnings over £732 per month or £169 per week
Employee NIC is due on earnings over £792 per month or £183 per week
Employees earning below £520 per month or £120 per week will be below the threshold for NICs
Employers contributions are 13.8%
Employee contributions are 12%
No NI contributions are due for employees aged under 21 or apprentices aged under 25 earning under £50,000 per annum
Employment allowance up to £3,000 can be claimed against employers NI (some restrictions apply)

From 6th April 2020 to 5th April 2021

SSP is £95.85 per week
SMP for first 6 weeks is 90% of average weekly earnings
SMP/SPP/SAP/ShPP/SPBP is £151.20 or 90% of average weekly earnings whichever is lower
92% of SMP/SPP/SAP/ShPP/SPBP can be recovered if your total Class 1 NICs are above £45,000 for the previous tax year
103% of SMP/SPP/SAP/ShPP/SPBP can be recovered if your total Class 1 NICs are £45,000 or lower for the previous tax year

From 6th April 2020 to 5th April 2021

Deductions are at 9% on earnings over £1615.83 per month (Plan 1) or £2214.58 per month (Plan 2)
Postgrad loan deductions are 6% on earnings over £1750 per month