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Minimum Wage Increased

It has been announced that the National Living Wage (NLW) and the National Minimum Wage (NMW) will increase in April 2017. The rates changes are as follows:

Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice
October 2016 (current rate) £7.20 £6.95 £5.55 £4.00 £3.40
April 2017 £7.50 £7.05 £5.60 £4.05 £3.50

To be eligible for the NMW and NLW you must be at least:

  • school leaving age to get NMW
  • aged 25 and over to get the NLW

Apprentices are entitled to the apprentice rate if they’re either:

  • aged under 19
  • aged 19 or over and in the first year of their apprenticeship 

Penalty for failure to pay the correct rates

The NMW is enforced by HMRC. HMRC enforcement is initiated either by complaint from workers or third parties or as a result of a risk profiling or targeted enforcement.

HMRC officers are able to carry out inspections at any time, without providing any reason, and can require employers to produce records and provide other information or access to determine entitlement. They may also remove records to make copies.

The enforcement measures available to HMRC include service of notices of underpayment, civil penalties, ‘naming and shaming’, recovery of underpayments through tribunals or civil courts, and criminal prosecution.

Should you or your business require any further guidance on rates of pay for workers then do not hesitate to contact the Slater Heelis on 0161 672 1246.