In his Autumn Statement, Philip Hammond confirmed that the National Living Wage will increase to £7.50 an hour from April 2017.
This means that employers will have to pay workers aged 25 and over the applicable rate or risk a complaint being made to HMRC and a penalty for non-payment of 200% of the amount owed (unless the arrears are paid within 14 days).
The current National Minimum Wage/National Living Wage rates are as follows:
| Age | 25 and over | 21 to 24 | 18 to 20 | Under 18 | Apprentice* |
| Current rate | £7.20 | £6.95 | £5.55 | £4.00 | £3.40 |
The rates from 1st April 2017 will be:
| Age | 25 and over | 21 to 24 | 18 to 20 | Under 18 | Apprentice* |
| April 2017 | £7.50 | £7.05 | £5.60 | £4.05 | £3.50 |
(*apprentices under 19 years old or 19 and over who are in the first year of apprenticeship).
Not entitled to the minimum wage
The government has identified certain types of workers who aren’t entitled to the National Minimum Wage or National Living Wage, which include the following:
- self-employed individuals
- company directors
- volunteers/voluntary workers
- workers on a government employment programmes
- members of the armed forces
Work experience and internships
You also won’t get the National Minimum Wage or National Living Wage if you’re:
a student doing work experience as part of a higher or further education course
- of compulsory school age
- a volunteer or doing voluntary work
- on a government or European programme
- work shadowing
It is important to ensure that your business is complying with its duty to pay the correct minimum wage. Should you require any further clarification on any of the above points then please contact the Slater Heelis employment team on 0161 672 1246.