NATIONAL MINIMUM AND NATIONAL LIVING WAGE INCREASES FROM 1 APRIL 2018

As from 1^st April the National Minimum and National Living Wage will be:

• The adult rate has increased by 4.4% from £7.50 to £7.83.
• The 21-24 year olds rate has increased by 4.68% from £7.05 to £7.38
• The 18-20 year olds rate has increased by 5.35% from £5.60 to £5.90
• The under 18 year old rate has increased by 3.7% from £4.05 to £4.20
• The apprentice minimum wage has increased by 5.7% from £3.50 to £3.70

With the minimum wage increases more employers than ever will be directly affected including even those that presently pay above the minimum wage.

It is illegal to pay any less than the minimum wage. Those employers who fail to pay this rate face tough action from the government.  Not only will employers have to pay back arrears of wages to the worker at current minimum wage rates but they also have financial penalties of up to 200% of arrears, capped at £20,000 per worker.

Last month (March 2018) the government named and shamed nearly 179 employers for underpaying 9,200 minimum wage workers by £1.1 million.  Not only were back payments recovered the employers were fined £1.3 million for underpaying.

Within the governments Good Work plan it announced the right for all workers to have a payslip.  The new law could benefit up to 300,000 UK workers who currently do not receive a payslip.  For those who are paid by the hour their payslip will have to include how many hours they have been paid for.  The reason for this is to ensure the worker understands their pay and can challenge if wrong.

For help with employer enquiries about the National Minimum Wage call the HMRC helpline on 0800 9172368.

If you need help with your business wages or would like us to deal with your payroll matters, please contact us on 0113 2864486.