Minimum wage increase from 1st April 2017
From 1st April 2017, the National Living Wage (NLW) for employees aged 25 and over will increase from £7.20 to £7.50 per hour.
This NLW increase is the first since its introduction in April 2016, keeping it on track to reach the target of £9 an hour by 2020.
The National Minimum Wage (NMW) will increase from 1st April to:
- Aged 21-24: £7.05 per hour
- Aged 18-20: £5.60 per hour
- Over compulsory school age but not yet 18: £4.05 per hour
- The apprentice rate (where the apprentice is under 19 or over 19 but in the first year if their apprenticeship): £3.50 per hour
With many companies caught out under-paying their staff in the last few months, make sure you are paying your staff correctly to avoid;
- an HMRC investigation
- tribunal claims
- public naming and shaming
- financial penalties
HMRC will not accept the excuse that you were not aware of the new rates of pay, so make sure you protect your business.
For more information contact our Payroll department on 01704 546000