National minimum wage rise from April

Partner Paul Maynard

The national minimum wage (NMW) will increase from 1 April 2017. The new rates will be:

  • £7.50 per hour (30p rise) for those aged 25 and over (the national living wage).
  • £7.05 per hour (10p rise) for those aged 21 to 24.
  • £5.60 per hour (5p rise) for those aged 18 to 20.
  • £4.05 per hour (5p rise) for those aged 16 to 17.
  • £3.50 per hour (10p rise) for apprentices aged under 19 and those aged 19 and over in the first year of apprenticeship.

In addition, the accommodation offset rate (applicable where any employer provides a worker with living accommodation) will rise from £6 to £6.40 for each day that accommodation is provided.

Is your business accidentally paying below the minimum wage?

The employment status of staff such as apprentices, interns and directors can be uncertain, and employers must be careful not to accidentally underpay them.

As well as being publicly ‘named and shamed’ by HM Revenue & Customs, employers that fail to pay their workers the national minimum wage could face fines of up to £20,000.

For expert legal advice on this or any area of employment law, please email Paul Maynard (Employment Law Services Partner) or call him on 01323 435900. To learn about Paul’s skills and experience, please view his website profile.

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