[11:49] Stuart Hogg
Payroll Outsourcing

National Minimum Wage April 2018

By February 1, 2018No Comments

National Minimum Wage Rates from April 2018

The National Minimum Wage and National Living Wages rates will increase in April, and all the rates will change together this year.  The minimum wage rates from April 2018 are as below:

From April 2018 Previous Rate Increase
The National Living Wage, workers aged over 25 years  £7.83  £7.50  4%
 Aged 21 – 24 years  £7.38  £7.05  5%
 Aged 18 – 20 years  £5.90  £5.60  5%
 Aged 16 – 17 years  £4.20  £4.05  4%
 Apprentice Rate  £3.70  £3.50  6%

Companies should ensure they meet these minimum requirements, although this is not always straightforward if, for instance, the employer provides accommodation.

The worker must be paid, on average, at or above the minimum wage for the pay reference period.  The pay reference period is determined by pay frequency and cannot be greater than 31 days.  The employer must ensure these minimums are met, and criminal action can be taken if they are not.

Care must be taken if the employer makes deductions for various items such as uniform or safety equipment, as these may bring the employee below the minimum.  Care must also be taken with salary sacrifice schemes, as the minimum wage will be calculated on the post sacrifice salary.

The rates were confirmed by the government in the Autumn Budget, and if you want further information on the National Minimum Wage please see here.