Are you familiar and up to date with the recent changes in the national living and minimum wage rates? Our handy guide will keep you up to speed!
National Minimum Wage
The National Minimum Wage is the minimum pay per hour most workers are entitled to by law. The rate will depend on a worker’s age and if they are an apprentice.
The National Living Wage
The Government’s National Living Wage was introduced on 1 April 2016 for all working people aged 25 and over, and is set at £7.20 per hour. The current National Minimum Wage for those under the age of 25 still applies.
Key points
- Most workers over school leaving age will be entitled to receive the national minimum wage.
- The national minimum wage & national living wage rate is reviewed annually by the Low Pay Commission.
- HM Revenue & Customs (HRMC) can take employers to court for not paying the national minimum or living wage.
- There are a number of exemptions. These do not relate to the size of the business, sector, job or region. Check www.gov.uk for more information
- The compulsory National Living Wage is the national rate set for people aged 25 and over.
Rates of pay
It is important to note that these rates, which came into force 1 October 2016, apply to pay reference periods beginning on or after that date.
The rates from 1 October 2016 are:
- £7.20 per hour – 25 years old and over
- £6.95 per hour – 21-24 years old
- £5.55 per hour 18-20 years old
- £4 per hour – 16-17 years old
- £3.40 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
The rate will then change every April starting April 2017.
For information and support on market rates to ensure you’re attracting and retaining the best candidates, drop us a line 01143211873