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, and is currently set at £7.20 per hour. In April 2017 it will go up to £7.50. The current National Minimum Wage for those under the age of 25 still applies.
- 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.
It is important to note that these rates, which came into force 1 October 2016, apply to pay reference periods beginning on or after that date.
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.