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9 February, 2018

National Minimum and National Living Wage increase

Posted in : January/February 2018 on by : gap personnel Tags: , , ,

The National Minimum Wage (NMW) is the minimum pay per hour most workers under the age of 25 are entitled to by law.
The government’s National Living Wage (NLW) is the minimum pay per hour most workers aged 25 and over are entitled to by law.
The rate will depend on a worker’s age and if they are an apprentice.

Rates
Date of Rate           25 and Over           21 to 24           18 to 20           Under 18           Apprentice
From April 2018  £7.83                          £7.38                 £5.90                 £4.20                  £3.70
From April 2017  £7.50                          £7.05                 £5.60                 £4.05                  £3.50
to March 2018

A new rate will apply to the next pay reference period that begins on or after:
– the date a rate increase begins
– the date an employee reaches a new age bracket
These rates are reviewed annually by the Low Pay Commission.

Exemptions
There are a number of people who are not entitled to the NMW/NLW.
The NMW and NLW do not apply to:
– Self-employed people.
– Volunteers or voluntary workers.
– Company directors.
– Some agricultural workers
– Some family members, or people who live in the family home of the employer who undertake household tasks.
All other workers including pieceworkers, home workers, agency workers, commission workers, part-time workers and casual workers must receive at least the NMW or NLW.

HM Revenue & Customs (HMRC) can take employers to court for not paying the NMW/NLW.

Apprentices
The apprenticeship rate only applies to:
– apprentices aged under 19
– apprentices aged 19 or over who are in the first year of their apprenticeship
Apprentices aged 19 or over in their second year of apprenticeship must receive the national minimum wage or national living wage rate their age entitles them to.