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Author: JP / / Latest News

Minimum Wage

The national minimum wage (NMW) and the National Living Wage (NLW) is an area most employers think they have got right, however they often get tripped up on one of the many details of the law surrounding this area. Getting this wrong even for one person can become very costly for the employer.

To prevent this you should make sure that you are correctly applying the minimum wage laws to the correct workers. Entitlement to NLW and NMW depends on your job status if you are self-employed, directors and true volunteers you are not entitled to the legal wage.

Entitlement to NMW applies to workers who are over compulsory school leaving age (please note this differs on your location), and aged 24. The NLW now applies to workers aged 25 and over. The apprenticeship rate applies where the apprentice is under 19 or 19 and over but in the first year of their apprenticeship. To ensure that you are paying the correct rate you should ensure that you track your employee’s birthdays which will allow you to apply the correct wage band.

Please note from 1 October 2016 the minimum wage is due to change, this will be the last time that this gets changed in October, after this date the minimum wage will be changed every April rather than October.

From 1 October 2016, the minimum wage set by the government will be:

New Old
Apprentices* £3.40 £3.30
16-17 £4.00 £3.87
18-20 £5.55 £5.30
21 & Over £6.95 £6.70
Living Wage
25 & Over £7.20

*This rate is for apprentices under the age of 19 and over in the first 12 months of the apprenticeship, then the rate applies to their age.

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