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. HMRC are the agency that ensures enforcement of the NMW and NLW.
What are rates of the NMW and NLW?
There are different levels of NMW and NLW, depending on your age and whether you are an apprentice. The rates will be changing from 1st April 2018 as shown below:
Ages 25 and over (National Living Wage) – From £7.50 per hour to £7.83 per hour
Rate for workers ages 21 – 24 years old – From £7.05 per hour to £7.38 per hour
Rate for works ages 18 – 20 years old – From £5.60 per hour to £5.90 per hour
Rate for workers aged 16 – 17 years old- From £4.05 per hour to £4.20 per hour
If you are required to amend your employees wage as a result of these rate changes please ensure you inform us as soon as possible.
Please note that the legislation contribution levels for Auto Enrolment Pension minimum will increase from 1st April 2018 from 1% for Employee and Employer (total 2%) to Employee Contribution 3% and Employer contribution 2% (total 5%). Where contributions are made fixed £ amount you will need to ensure the total covers the minimum %.