National minimum and living wages rise from 1 April

The national living wage (NLW) is now £7.50 an hour.

Most workers who are aged 25 and over and not in their first year of an apprenticeship are entitled to the new rate.

The national minimum wage (NMW) rates for various ages have also increased.

The following rates now apply:

Age From 1 April 2017
25 and over £7.50
21 to 24 £7.05
18 to 20 £5.60
16 to 17 £4.05
Apprentices* £3.50

*Apprentices rate for those aged 16-18 and 19 or over in their first year.

A poll of more than 1,400 workers earning less than £15,000 found:

  • 69% are unaware that they should be paid for travel time between appointments
  • 57% didn’t know that money deducted from wages to cover uniform costs is unlawful if it takes their earnings below the hourly rate they are entitled to
  • 48% are unaware that tips can’t be used to top up pay to the legal minimum.

Jennie Granger, director general for customer compliance at HMRC, said:

“Paying the NMW is the law – it’s not a choice. Employers must pay their workers what they’re entitled to and follow the rules.”

Checks and calculations

It is a legal requirement for all employers to check if their employees are eligible for the NLW or NMW. Failure to do will result in a fine and being named by the government.

Employers need to keep proof that they are paying their staff the correct wage. All records have to be kept for 3 years.

Contact us to discuss paying the NMW and NLW.

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