Minimum wage rates rise from 1 April

Minimum wage rates rise from 1 April

The national minimum wage (NMW) and national living wage (NLW) rates rise from 1 April 2018. So what does this mean?

For pay on or after 1 April, the hourly rates for NMW and NLW are:
• NLW for workers aged 25 and over: £7.83 (4.4% increase from £7.50).
• NMW for workers aged 21 and over: £7.38 (4.68% increase from £7.05).
• NMW youth development rate for workers aged 18 and not yet 21: £5.90 (5.36% increase from £5.60).
• NMW young workers rate for 16 and 17 year olds who are above school leaving age and are not apprentices: £4.20 (3.7% increase from £4.05).
• NMW for apprentices aged under 19, or 19 or over and in the first year of their apprenticeship: £3.70 (5.7% increase from £3.50).

The NMW and NLW (minimum) are set by statute and enforced by HM Revenue and Customs. This should not be confused with the real living wage, which is voluntary and is based on the cost of living. The campaign for a real living wage is promoted by the Living Wage Foundation and seeks a voluntary commitment from employers to pay at least a real living wage as set independently each November. 

Basic information on minimum wage, who is and is not entitled to it, what employers must do, and disputes can be found on the ACAS website.