The national living wage (NLW) and the national minimum wage (NMW) rates will increase on 1 April 2017.
Eligible workers over the age of 25 will have to be paid the new NLW rate of £7.50 while the NMW rate for those aged 21-24 increases by 10p to £7.05 an hour.
National Minimum Wage
The rates for the national minimum wage will rise as follows (figures in brackets show the current rate):
- Workers aged 25 and over: £7.50 (£7.20)
- Workers aged 21 to 24: £7.05 (£6.95)
- Workers aged 18 to 20: £5.60 (£5.55)
- Young workers aged under 19 but above compulsory school age who are not apprentices: £4.05(£4.00)
- Apprenticeship rate: £3.50 (£3.40)
*Apprentices rate for those aged 16-18 and 19 or over in their first year.
A government poll of more than 1,400 workers earning less than £15,000 highlighted a lack of awareness of their rights.
- 69% were unaware about payment for travel time between appointments
- 57% didn’t know that having money deducted from their wages to cover uniform costs is unlawful
- 48% were unaware that tips can’t be used to top up pay to the legal minimum.
Margot James, business minister, said:
“We are determined to make sure everybody in work receives a fair wage and while most employers get it right, there are still a small number who fail to play by the rules.”
Jennie Granger, director general for customer compliance at HMRC, said:
“Paying the NMW is the law – it’s not a choice. Employers must pay their workers what they’re entitled to and follow the rules.”
Contact us to discuss paying the NMW and NLW.