Wage Agreement 2020

Wage Agreement 2020: A Guide to Understanding the Latest Developments

The year 2020 has been a significant time for workers worldwide, with the outbreak of the COVID-19 pandemic affecting the global economy. As a result, many workers have been affected with job losses, pay cuts, or reduced working hours. In light of these developments, wage agreements have become more important than ever.

A wage agreement is a legally binding agreement between an employer and a union or employees, which sets out the terms and conditions of the wages and benefits to be received by workers. In 2020, some notable wage agreements were made, and here is a guide to understanding their implications.

Minimum Wage Increases

In the UK, the national living wage for workers over 25 increased to £8.72 per hour from April 2020. The minimum wage for younger workers also increased by a similar percentage. Although the percentage increase was not significant, it was an increase nonetheless, and it was welcomed by many workers who were struggling with the rising cost of living.

In the US, several states and cities have also increased their minimum wage rates, with some reaching as high as $15 per hour. These increases have been welcomed by workers and unions who have been campaigning for a living wage for years.

Public Sector Pay Increases

In the UK, public sector workers were awarded a pay rise of 2.8%, the largest increase in almost a decade. The increase was for workers in the health sector, education, and the armed forces. The pay rise was welcomed by workers who had been hit hard by years of austerity and pay freezes.

In the US, President Trump signed an executive order granting federal workers a pay raise of 1% for 2020. The increase was the largest in a decade for the federal workforce. The pay rise was seen as a positive development for public sector workers who have been working tirelessly during the pandemic to keep essential services running.


Wage agreements are critical for workers, especially during turbulent times like a pandemic. In 2020, there were some significant wage agreements that benefited workers, such as minimum wage increases and public sector pay rises. It is essential to keep an eye on these developments as they affect the quality of life of workers and their families. As a worker, it is important to be aware of your rights and to speak out if you feel that you are being treated unfairly.

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