From 1st April 2018 both the National Living Wage ( NLW ) and the National Minimum Wage ( NMW ) will be increasing. These rates are the legal minimum that you must pay your workers. An employee can report an underpayment of wages via a straightforward online form, and also make a claim at Tribunal for the underpayment. The Tribunal fees have also now been removed, meaning it will cost an employee nothing to commence the claim.
The NLW will rise from £7.50 per hour to £7.83 per hour. This is an increase of 4.4% and is the biggest rise since 2008. The NLW applies to workers aged 25 and over.
The NMW increases as follows :
- a) workers aged 21-24 : from £7.05 to £7.38 per hour
- b) workers aged 18-20 : from £5.60 to £5.90 per hour
- c) workers over compulsory school age but not yet 18 : from £4.05 to £4.20 per hour
- d) apprentice rate : from £3.50 to £3.70 per hour
All employers MUST ensure that they comply with this legislation to avoid back payments, penalties, Tribunal claims, and being named on the Government Register for all to see!