New national minimum wage rates announced

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.

Findings:

  • 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.

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