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What is The National Minimum Wage?

The National Minimum Wage is the minimum pay that all workers regardless of age are entitled to. The National Living Wage only applies to workers aged over 25 years of age and is higher than the National Minimum Wage. It doesn’t matter what size of company you run, or how many people you employ, you are always required to pay the correct minimum wage. We’ve listed the rates below to help you.

Increases to Minimum Wage Rates in 2017

The National Living Wage for those aged 25 and over is going up at the beginning of April from £7.20 per hour to £7.50 per hour. There will also be increases at the same time to the National Minimum Wage payable to those under 25 and apprentices. These are minimum requirements of pay and are assessed by looking at a worker’s average salary across all their hours of work, even if you pay different rates for different work, such as travelling time.

Rates of pay now (Jan 2017):

  • £7.20 per hour – 25 years old and over
  • £6.95 per hour – 21-24 years old
  • £5.55 per hour 18-20 years old
  • £4 per hour – 16-17 years old
  • £3.40 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

Rates of pay from 1st April 2017:

  • £7.50 per hour – 25 yrs old and over
  • £7.05 per hour – 21-24 yrs old
  • £5.60 per hour – 18-20 yrs old
  • £4.05 per hour – 16-17 yrs old
  • £3.50 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

Is anyone exempt from The National Minimum Wage?

Most workers are entitled to at least the National Minimum Wage including home-workers, agency workers, people who work on commission, part-time workers and casual workers. The only exempt groups are as follows:

  • Self-employed workers
  • Voluntary workers
  • Company directors
  • Family members or family household members who undertake household tasks.

In most cases the National Minimum Wage requirements are fairly straightforward. But, if you are at all unsure about what rates of pay to allocate to staff we recommend seeking professional help, and checking the Gov.Uk website. Our qualified staff are always on hand to help, give us a call on 0333 444 0165 or email help@citrushr.com

 

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