26 January 2017 by Crystal HR & Payroll Ltd
Employers are facing a second increase in minimum wage rates come 1 April 2017
The National Minimum Wage – The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rate will depend on a worker’s age and if they are an apprentice.
The National Living Wage – The Government’s National Living Wage was introduced on 1 April 2016 for all working people aged 25 and over.
- Most workers over school leaving age will be entitled to receive the NMW.
- The NMW /NLW rate is reviewed annually by the Low Pay Commission.
- HM Revenue & Customs (HRMC) can take employers to court for not paying the NMW/NLW.
- There are a number of exemptions to those who receive the NMW/NLW. These do not relate to the size of the business, sector, job or region.
- The compulsory National Living Wage is the national rate set for people aged 25 and over.
Rates of pay
The rates from 1 October 2016 are:
- £7.20 per hour – 25 yrs old and over
- £6.95 per hour – 21-24 yrs old
- £5.55 per hour 18-20 yrs old
- £4 per hour – 16-17 yrs old
- £3.40 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
The rate will then change every April starting April 2017. The rates from 1 April 2017 will be:
- £7.50 per hour – 25 yrs old and over
- £7.05 per hour – 21-24 yrs old
- £5.60 per hour – 18-20 yrs old
- £4.05 per hour – 16-17 yrs old
- £3.50 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
At Crystal Payroll, we appreciate small and medium sized employers, (SME’s), do not have the time or resources to work out the potential cost implications to their business and how this will affect them in the short and long terms. As such we are offering a free review of your payroll to help you work out the cost implications to your business over the next 12 months and also in the short term.
For your free payroll review or to discuss your payroll and auto-enrolment requirements
One of our team will be pleased to get back to you within 24 hours.