National Minimum Wage and National Living Wage

/, HR News, News, Recruitment/National Minimum Wage and National Living Wage

National Minimum Wage and National Living Wage

2018-03-06T13:48:39+00:00 March 6th, 2018|All, HR News, News, Recruitment|

The new National Minimum Wage/Living rates come into effect in April 2018 – to ensure compliance, make sure you’re up to date with the change.

  • The National Minimum Wage (NMW) is the minimum pay per hour most workers under the age of 25 are entitled to by law.
  • The government’s National Living Wage (NLW) is the minimum pay per hour most workers aged 25 and over are entitled to by law.

The rate will depend on a worker’s age and if they are an apprentice.

HMRC (HM Revenue & Customs) can take employers to court for not paying the NMW/NLW.

Current rates

  • £7.50 per hour for ages 25 and over.
  • £7.05 per hour for ages 21 to 24.
  • £5.60 per hour for ages 18 to 20.
  • £4.05 per hour for school leaving age to 17

Changes to the rates

Date of rate 25 and over 21 to 24 18 to 20 Under 18 Apprentice
From April 2018 £7.83 £7.38 £5.90 £4.20 £3.70
From April 2017 to
March 2018
£7.50 £7.05 £5.60 £4.05 £3.50
From October 2016 to
March 2017
£7.20 £6.95 £5.55 £4.00 £3.40
From April 2016 to
September 2016
£7.20 £6.70 £5.30 £3.87 £3.30

A new rate will apply to the next pay reference period that begins on or after the date:

  • a rate increase begins
  • an employee reaches a new age bracket.

For example: an employee paid on the 20th of each month will start to receive the new rate of minimum wage from 21 April onwards.

These rates are reviewed annually by the Low Pay Commission.

If a worker receives above NMW there is no legal obligation on an employer to increase their pay when the NMW rate increases.