The long-running campaign for a compulsory national living wage (NLW) comes to fruition on 1 April 2016. From that date onwards most UK workers, aged over 25, will see their minimum pay rate rise to £7.20 per hour.
The national minimum wage (NMW) will continue to apply to those aged under 25, although there are some who don’t benefit from it, including self-employed people, volunteers, directors, and family members or people who undertake household tasks and live in the family home of the employer. The vast majority of other employees are entitled to the NMW and the current rates are:
- £6.70 aged 21 and over
- £5.30 aged 18-20
- £3.87 aged under 18
- £3.30 apprentices aged 16-18, and 19 or over in the first year of apprenticeship.
Any changes to the level of the new NLW are expected to take effect on 1 April each year, with the NMW review continuing to be introduced on 1 October each year.
HMRC will continue to enforce the now well established NMW, alongside the new NLW laws so if there’s anything you’re not sure about please do get in touch on 01782 279615.