National Minimum Wage

By February 9, 2017Legislation

Did you know that within the 2016 Budget, it was announced that from April 1st 2017 increases in the National Minimum Wage (NMW) and National Living Wage (NLW) would be aligned?

The NMW is the minimum pay per hour for most employees set by law.

For adults over the age of 25 it will rise to £7.50. Previously, it was £7.20.

The majority of workers over school leaving age will be legally entitled to receive the NMW.

The other new hourly rates are:
* Adult 21-24 goes up to £7.05  (previously £6.95)
* 18-20 year olds goes up to  £5.60 (previously £5.55)
* 16-17 workers to £4.05 (previously £4)
* Apprentice rate to £3.50 (previously £3.40)

The new rates are effective for the first full pay reference period – that starts on or after 1 April 2017.

It is possible to pay the new rates from 1 April or from the time that a worker moves from one age band to another.

Remember that:
* HM Revenue & Customs can take employers to court if they do not pay the NMW / NLW.
* There are a number of exemptions to the rules (ask us if you are not sure).

The NMW / NLW rate is reviewed annually by the Low Pay Commission.

This is quite a complex area and you will want to ensure that your payroll is not breaking the law.

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