Workers, both under and over the age of 25, including apprentices will see an increase in their take home pay due to increases in both the National Minimum and Living Wage. These new rates came into effect on 1 April 2018 and so should be implemented in workers’ April pay packets.
The National Minimum Wage is the amount which workers aged under 25, but of school-leaving age, are entitled to.
The rate for workers aged 21 to 24 has increased to £7.38 from £7.05.
For workers aged 18 to 20 the rate has increased to £5.90 from £5.60.
For those under 18 the rate is now £4.20, up from £4.05.
Under 19s who are on an apprenticeship programme, or those aged 19 and over who are on their first year of an apprenticeship programme are entitled to £3.70, which has increased from £3.50.
Apprentices aged over 19 who have completed their first year of an apprenticeship programme are entitled to the National Minimum Wage for their age.
The National Living Wage is the rate that all workers aged 25 or over are entitled to.
The National Living Wage increased to £7.83 from £7.50 on 1 April 2018.
All rates listed are per hour.
The fines for not comply with National Minimum and Living Wage requirements can be substantial, so it’s important not to get caught out.
Clayton & Brewill provides audit, tax and advisory services to individuals, owner managed businesses and SMEs across the Midlands, from its network of offices across the region in Nottingham, Long Eaton and Melton Mowbray.