As announced by the Chancellor in the Autumn Statement, the rate of the National Living Wage is set to increase to £7.50 per hour from April 2017.
In line with this, the government has accepted the recommendations of the Low Pay Commission for the National Minimum Wage and from April 2017 the new rates will be as follows:
|£7.05 per hour for 21-24 year olds|
|£5.60 per hour for 18-20 year olds|
|£4.05 per hour for 16-17 year olds|
|£3.50 per hour for apprentices (under 19 or 19 and over and in the first year of their apprenticeship)|
The National Living Wage and National Minimum Wage are legal requirements. If H M Revenue and Customs (HMRC) find that an employer has not paid the correct minimum wage, they can send a notice for the arrears as well as a penalty.
If you are unsure what you should be paying, please consult a specialist. Green & Co run a dedicated payroll department that can organise this for you. If you would like more information, please contact us on 01633 871122.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.