National Living Wage and National Minimum Wage set to increase in April

Mar 05, 2018
payroll

The hourly rates payable to employees under the National Living Wage (NLW) and National Minimum Wage (NMW) are set to increase across all categories in April 2018. Employees must be at least school leaving age to apply for the National Minimum Wage and 25 or over to qualify for National Living Wage. As of 1st April, the main hourly rate, payable to employees aged 25 and over, will increase by 33 pence from its current level of £7.50 to £7.83.

The following rates will also apply:

  • 21 to 24                   from £7.05 to £7.38
  • 18 to 20                   increasing from £5.60 to £5.90
  • Under 18                 increasing from £4.05 to £4.20
  • Apprentice              increasing from £3.50 to £3.70

The obligation for keeping up with wage rates in line with National Living Wage falls on employers and failure to pay staff at the correct level could result in a fine from HMRC or even court action.

For more information about the increases or to speak to us about our payroll services contact a member of the Walker Begley team on 01925 210 000.  

There are some limited exemptions on entitlement to the National Living Wage, details of which can be found here.

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