Minimum Wage increases

The National Minimum Wage (NMW) and National Living Wage (NLW) are the legal minimum wage rates that must be paid to employees. Employers are liable to be penalised for not complying with the NMW and NLW rules.

There are different levels of NMW and NLW, depending on age and whether the employee is an apprentice. The rates are due to increase from 1 April 2018 as shown in the following table:

  Rate from 1 April 2017 (£) Rate from 1 April 2018 (£)
NLW for workers aged 25 and over 7.50 7.83
NMW main rate for workers aged 21-24 7.05 7.38
NMW 18-20 rate 5.60 5.90
NMW 16-17 rate for workers above school leaving age but under 18 4.05 4.20
NMW apprentice rate * 3.50 3.70

*for apprentices under 19 or 19 or over and in the first year of their apprenticeship

There are no exemptions from paying the NMW on the grounds of the size of the business.

If you would like help with payroll matters please get in touch.

Internet link: ACAS article

Latest News for Business Archive

13 Mar 2018

Spring Statement 2018

The Chancellor Philip Hammond presented his first Spring Statement on Tuesday 13 March 2018.

05 Mar 2018

Tribunal rules BBC journalist is caught by 'IR35' legislation

A First Tier Tribunal has ruled that a presenter paid via a personal service company was caught by the IR35 rules resulting in additional tax and national insurance contributions being payable.

J R Watson & Co Accountants App

Your 24/7 Accountant in your Pocket!

Click here for more details of our FREE J R Watson & Co app for smart phones and tablets.