National Minimum Wage and National Living Wage

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National Minimum Wage

The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rate will depend on a worker’s age and if they are an apprentice.

The National Living Wage

The Government’s National Living Wage was introduced on 1 April 2016 for all working people aged 25 and over, and is currently set at £7.20 per hour. In April 2017 it will go up to £7.50. The current National Minimum Wage for those under the age of 25 still applies.

Key points

Most workers over school leaving age will be entitled to receive the NMW.
The NMW /NLW rate is reviewed annually by the Low Pay Commission.
HM Revenue & Customs (HRMC) can take employers to court for not paying the NMW/NLW.
There are a number of exemptions to those who receive the NMW/NLW. These do not relate to the size of the business, sector, job or region.
The compulsory National Living Wage is the national rate set for people aged 25 and over.

The rates from 1 April 2017 will be:

£7.50 per hour – 25 yrs old and over
£7.05 per hour – 21-24 yrs old
£5.60 per hour – 18-20 yrs old
£4.05 per hour – 16-17 yrs old
£3.50 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

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