On the 1st April, the National Living Wage and Minimum Wage are set to increase again with one of the largest increases seen in a decade. The rates, which are reviewed yearly by the government, are advised by the independent body Low Pay Commission and rise to match inflation.

The National Minimum Wage is the minimum pay per hour almost all workers are entitled to. The National Living Wage is higher than the National Minimum Wage and paid to workers if they’re over 25 years old.

The government have pledged that the National Living Wage, which came into effect on the 1st of April 2016, will reach £9 by 2025.

Pay rates from 1 April

  • 21 - 24 year olds
  • £738per hour
  • 18 - 20 year olds
  • £590per hour
  • 16 - 17 year olds
  • £420per hour
  • Apprentices
    Under 19 or those in their first year
  • £370per hour

What this means for employees

For full-time workers over 25, the extra 33p an hour could equate to an extra £600 a year – and according to the Low Pay Commission, it will be the largest increase in a decade for 18 – 20 and 21 – 24-year olds, with a rise of 4.7% and 5.4% respectively.

What this means for employers

As an employer, you are legally required to pay workers the above rates from the 1st April. There are a few rules to these rates – Apprentices are entitled to the apprentice rate if they’re either aged 19 or under or aged 19 or over in the first year of their apprenticeship.
Failure to meet the required rates could result in a fine and be featured in the annual “name and shame” list.

If you’re an employer or an employee who needs advice on the latest changes, get in contact with the Bluestones One team now.