New National Minimum Wage And Living Wage Rates

The new National Minimum Wage and National Living Wage rates come into effect in April and must be paid to all qualifying staff. You should ensure that your Payroll systems take this into account.

The New Rates

The new rates are as follows:-

• 25 and Over – rises from £7.50 to £7.83
• 21 to 24 – rises from £7.05 to £7.38
• 18 to 20 – rises from £5.60 60 £5.90
• Under 18 – rises from £4.05 to £4.20
• Apprentice – rises from £3.50 – £3.70

Who Qualifies For The National Minimum Wage and Living Wage

Workers over school leaving age are entitled to the National Minimum Wage. Workers over 25 are entitled to the National Living Wage. It is illegal to contract for payments below the minimum wage or living wage.

Workers are also entitled to the correct minimum wage if they are

• Part-time
• Casual labourers
• Agency workers
• Workers and homeworkers paid by the number of items they make
• Apprentices
• Trainees, workers on probation
• Disabled workers
• Agricultural workers
• Foreign workers
• Seafarers
• Offshore workers

Who Does Not Qualify For The National Minimum Wage and Living Wage

Not everyone qualifies for the minimum wage rates, the main exceptions are:-

• Self-employed people
• Company Directors
• Voluntary workers
• Workers on a government employment programme
• Serving members of the armed forces
• Family members of the employer living at home
• Non-family members living in the employer’s home who share in the work and leisure activities, who are treated as part of the family
• Workers younger than school leaving age (usually 16)
• Higher and further education students on a work placement of up to 1 year
• Workers on pre-apprenticeships schemes
• People on some European Union programmes
• Workers on a Jobcentre Plus Work trial
• Share fishermen
• Prisoners
• Members of a religious community

Apprentices

Apprentices are entitled to the apprentice rate if they are:

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

Apprentices who are over 19 and who have completed the first year of their apprenticeship are entitled to the appropriate minimum wage for their age group.

This article is for guidance only and you are recommended to visit the Government National Minimum Wage and Living Wage details web page https://www.gov.uk/national-minimum-wage/who-gets-the-minimum-wage

If you would like further guidance on payroll and wages please click here to book a free consultation with Farries Bookkeeping Services.