On 1 April 2016, the government introduced the National Living Wage for all working people aged 25 and over. The rate is currently set at £7.20 per hour and will increase to £7.50 from 1 April 2017. All employed individuals under the age of 25 are entitled to the National Minimum Wage. The rate per hour is determined by the individual’s age and whether they are enrolled as an apprentice.
The Low Pay Commission reviews the rates annually, and any employers found not to be paying the correct rate can be taken to court by HM Revenue and Customs. We therefore encourage you to review your employees’ entitlements.
The new rates will be enforced from 1 April 2017. The previous year’s rates are shown in parentheses.
- National Living Wage; 25 years and over – £7.50 (£7.20)
- National Minimum Wage; 21-24 years – £7.05 (£6.95)
- National Minimum Wage; 18-20 years – £5.60 (£5.55)
- National Minimum Wage; 16-17 years – £4.05 (£4.00)
- Apprenticeships under the age of 19 years, or 19 and over for those in the first year of the apprenticeship – £3.50 (£3.40)
There are a number of exemptions to those who receive the National Living or Minimum Wage. These exemptions relate to self-employment; voluntary work; company directors and family members.
If you have any questions or concerns, please do not hesitate to contact us at enquiries@myersclark.co.uk