Changes to National Minimum Wage and National Living Wage from 1st April 2017
March 16, 2017
National Minimum Wage
The National Minimum Wage is the minimum wage paid per hour most workers are entitled to by law. The rate depends on a worker’s age and if they are an apprentice.
National Living Wage
The National Living Wage was introduced on 1st April 2016 for working people aged 25 and over and is currently set at £7.20 per hour.
Important points to remember:-
- Most workers over school leaving age will be entitled to receive the National Minimum Wage
- The National Minimum Wage/ National Living Wage is reviewed annually by the Low Pay Commission
- HMRC can take employers to Court for not paying the National Minimum Wage or the National Living Wage and also the Government does “name and shame” employers that fail to pay the National Minimum Wage (please step forward Debenhams Retail PLC and many others)
- There are a number of exemptions to those who receive the National Minimum Wage and National Living Wage. These do not relate to the size of the business sector or job or region
The new rates from 1st April 2017 will be:-
- £7.50 per hour – 25 years old and over
- £7.05 per hour – 21-24 years old
- £5.60 per hour – 18-20 years old
- £4.05 per hour – 16-17 years old
- £3.50 per hour – for apprentices under 19 or 19 or over for in the first year of apprenticeship
There a number of people who are not entitled to the National Minimum Wage/National Living Wage. These are:-
- Self-employed people
- Volunteers or voluntary workers
- Company Directors
- Family members or people who live in the family home of the employer who undertake household tasks
All other workers including piece workers, home workers, agency workers, commission workers, part-time workers and casual workers must receive at least the National Minimum Wage.
The information contained in this article is intended for general guidance only. It provides useful information but it is not a substitute for obtaining legal advice as the articles do not take into account specific circumstances. So do please Contact US for legal advice on the issues raised.