New national living wage rates from 1 April

The national living wage (NLW) and the national minimum wage (NMW) rates will increase on 1 April 2017.

Eligible workers over the age of 25 will have to be paid the new NLW rate of £7.50 while the NMW rate for those aged 21-24 increases by 10p to £7.05 an hour.

Age

From 1 April 2017

Current rates

25 and over

£7.50

£7.20

21 to 24

£7.05

£6.95

18 to 20

£5.60

£5.55

16 to 17

£4.05

£4.00

Apprentices*

£3.50

£3.40

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

A government poll of more than 1,400 workers earning less than £15,000 highlighted a lack of awareness of their rights.

Findings:

  • 69% were unaware about payment for travel time between appointments
  • 57% didn’t know that having money deducted from their wages to cover uniform costs is unlawful
  • 48% were unaware that tips can’t be used to top up pay to the legal minimum.

Margot James, business minister, said:

“We are determined to make sure everybody in work receives a fair wage and while most employers get it right, there are still a small number who fail to play by the rules.”

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.”

Contact us to discuss paying the NMW and NLW.

 

Posted by ANDREW AINSWORTH Tuesday, February 28, 2017 10:11:00 AM Categories: News

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