The National Minimum Wage (NMW) and National Living Wage (NLW) are the legal minimum wage rates that must be paid to employees. Employers are liable to be penalised for not complying with the NMW and NLW rules.
There are different levels of NMW and NLW, depending on age and whether the employee is an apprentice.
The rates are due to increase from 1 April 2018 as shown in the following table:
|RATE FROM 01 APR 2017||RATE FROM 01 APR 2018|
|NLW For Workers 25 and Above||7.50||7.83|
|NMW Main rate for workers aged 21-24||7.05||7.38|
|NMW 18-20 rate||5.60||5.90|
|NMW 16-17 rate for workers above school leaving age but under 18||4.05||4.20|
|NMW Apprentice rate*||3.50||3.70|
OTHER IMPORTANT CHANGES FROM APRIL 2018
*The minimum auto enrolment pension contributions are rising to 3% for employees and 2% for employers
*Emergency Tax Code is changing from 1150L to 1185L
*NL Limit for Directors is increasing from £680.33 to £702.00 per month
*Statutory Sick Pay (SSP) is increasing to £92.05 per week
*Statutory Maternity Pay (SMP) is increasing to £145.18 per week