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NMW and NLW increases take effect

Newsletter issue - April 2018.

New rates for the National Minimum Wage (NMW) and National Living Wage (NLW) (aged 25 and over) apply from 1 April 2018, and employers must ensure that they implement them accordingly. The rates are as follows:

  • 25 and over - £7.83 per hour;
  • 21 - to 24-year-olds - £7.38 an hour;
  • 18 - to 20-year-olds - £5.90 an hour;
  • under 18s - £4.20 an hour; and
  • Apprentice rate - £3.70 an hour.

Severe penalties may be imposed for failure to comply with NMW/NLW obligations. Broadly, the penalty percentage which may be imposed for non-compliance is now 200%. The maximum penalty is a hefty £20,000 per worker, although it may be reduced by 50% if the unpaid wages and the penalty are paid within 14 days.

For further information on the NMW, see the GOV.UK website at https://www.gov.uk/national-minimum-wage-rates.