National Minimum Wage

News on 21 March 2018

All employers need to pay their employees at least the National Minimum Wage (NMW). The NMW is due to increase on 1st April 2018. This guide will cover, who should be paid it, how much it is, and what to pay Apprentices.

 

Who is entitled to NMW?

Workers must be at least school leaving age to get the NMW. They will be entitled to the NMW for their age bracket if they are:

  • Part time
  • Casual workers e.g. someone hired for one day
  • Agency workers
  • Workers and homeworkers paid by the number of items they make
  • Apprentices
  • Trainees and workers on probation
  • Disabled workers
  • Agricultural workers
  • Foreign workers
  • Seafarers
  • Offshore workers

Remember – It is a criminal offence not to pay someone the NMW or to fake payment records. If HMRC find out that an employer is not paying the correct rates, there can be a fine, the Company can be named and shamed by the Government, and they will be ordered to pay the employee what is owed to them.

 

What is Apprentice Rate?

Apprentices are entitled to Apprentice Rate if they are either:

  • Under 19; or
  • 19 or over and in the first year of their apprenticeship.

Apprentices over 19, who have completed the first year of their apprenticeship are entitled to the NMW for their age.

Year Apprentice Rate
April 2017 (current) £3.50
April 2018 £3.70

 

What is NMW?

This will depend on the employee’s age. The table below shows how much you will need to pay your employees from 1st April 2018.

Age NMW
Under 18 £4.20
18 – 20 £5.90
21 – 24 £7.38
25 and over £7.83

 

 

Need help? If you need any help or just want to talk it through with an Advisor, get in touch! Chat@pitstophr.co.uk 03300 414 636