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Increase to the National Living and National Minimum Wage

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As of April 1st 2017, both the National Living Wage and National Minimum Wage have increased, with over 2 million workers receiving a pay rise. It is important to keep up to date with this legislation to avoid paying fines for non-compliance!

At Stipendia, our team of payroll experts are on hand to help guide you through these changes and keep you and your business up to date with the new laws and legislation.

What is the National Minimum Wage (NMW)?

The minimum wage was brought into effect in October 2012 and is an hourly rate which workers in most sectors of the British economy must be paid. Reviewed on an annual basis, the rates have increased as follows:

  • For 21 to 24 year olds – from £6.95 to £7.05 per hour
  • For 18 to 20 year olds – from £5.55 to £5.60 per hour
  • For 16 to 17 year olds – from £4.00 to £4.05 per hour
  • For apprentices – from £3.40 to £3.50 per hour

How is this different to the National Living Wage (NLW)?

The living wage is a further mandatory rate introduced in April 2016 and was introduced for workers over the age of 25.

This rate has also increased from £7.20 to £7.50 an hour, and it is predicted that the NLW will rise to £9 an hour by 2020.

It is important to keep up to date with the wage increases and HM Revenue and Customs (HMRC) can take employers to court for not paying the set wage rates. Companies can receive a fine of up to £20,000 per worker for non-payment and be banned from being a company director for up to 15 years!

If you would to consult with one of expert team, please contact Stipendia on 0845 308 2288 or visit our website – Our team of payroll specialists are on hand to guide through the processes of wage compliance, payroll, auto enrolment and more.

Key Contact: Lynne Auton
Tel: (0845) 308 2288
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