National Minimum Wage
The National Living Wage and National Minimum Wage will increase from April 2018 and the new rates are:
Aged 25 & over - £7.83 per hour
Aged 21 – 25 - £7.38 per hour
Aged 18 – 20 - £5.90 per hour
Under 18 - £4.20 per hour
Apprentice - £3.70 per hour
Apprentices are entitled to the apprentice rate if they’re either:
Aged under 18
Aged 19 or over and in the first year of their apprenticeship
Apprentices are entitled to the minimum wage for their age if they are both:
Aged 19 or over
Have completed the first year of their apprenticeship
If you don’t increase the pay-rates of those on minimum wage at the right time then your business is breaking the law and can potentially be fined and penalised by HMRC.
Key areas to pay attention to are:
Overtime – if your employees work above their paid hours then you need to ensure that you are paying them for the overtime that they work. If you don’t then then amount that you are paying them per hour will fall below the legal minimums.
Training and compulsory meetings – if you require employees to attend additional training, compulsory meetings, security checks at the start and end of shift etc then they need to be paid for these, several big companies have been caught out by this in the past and end up named and shamed.