Increase in the National Living Wage and National Minimum Wage from 1 April 2017 - Are you ready?
New National Living Wage and National Minimum Wage rates apply from 1 April 2017:
National Living Wage (NLW):
- Employees aged 25 or over who are not in their first year of an apprenticeship will be legally entitled to £7.50 per hour.
National Minimum Wage (NMW):
- Employees aged 21 to 24 - the rate increases to £7.05 per hour;
- Employees aged 18 to 20 - the rate increases to £5.60 per hour;
- Employees aged under 18 - the rate increases to £4.05 per hour;
- For employees completing a nationally recognised apprenticeship qualification under the age of 19, or older but in the first year of the apprenticeship period – the rate increases to £3.50 per hour.
Employers should also be aware that failure to pay the prescribed rates can lead to substantial fines and prosecution. In addition if HMRC discover that you have not paid your employees the correct rate of pay then you will have to pay the shortfall to your employees.
If you would like any additional information regarding the increase in the National Living Wage and National Minimum Wage please don't hesitate to contact our Payroll Partner, Graeme Sheridan on the details below:
direct dial: 01942 292506
mobile: 07712 679064