With the new financial year just over a month away, both employers and employees should be aware that increases to the National Minimum Wage and National Living Wage are also just around the corner.
However, both employers and workers should note that the incremental increases in both the National Minimum Wage (NMW) and National Living Wage (NLW) will come into effect on 1st April 2018, in advance of the new tax year.
The rates will be inreasing as follows:-
- Those aged 25 and over, who are entitled to receive the NLW, will see this increase from £7.50 to £7.83;
- Those aged between 21 and 24, who are entitled to receive the NMW, will see this increase from £7.05 to £7.38;
- Those aged between 18 and 20, who are entitled to receive the NMW, will see this increase from £5.60 to £5.90;
- Those aged under 18, who are entitled to receive the NMW, will see this increase from £4.05 to £4.20, and
- For apprentices, the NMW will increase from £3.50 to £3.70.
Special rules may also apply in respect of NMW and NLW where an employer provides accommodation to its employees and/or workers.
These increases should come as no surprise to employers in particular, given the incremental increases that have occurred in recent years.
However, employers should take care to consider their policies and procedures, including their existing contracts with their employees and workers to ensure that they reflect these changes.
This article is not a substitute for legal advice on specific facts and circumstances. It is designed as a free update on the law at the time of publishing. Knight Polson Limited trading as QualitySolicitors Knight Polson accepts no responsibility for reliance on this article and recommends that you seek independent legal advice on your specific circumstances prior to taking any steps.
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