National Minimum Wage Updates
As of 1st October 2016 the new National Minimum Wage rates came into effect for everyone under the age of 25. For anyone aged 25 and over there is no increase in their £7.20 minimum wage as this was increased in April 2016 in the new National Living Wage.
From 1 October 2016 the new rates are as follows:
25 & over - £7.20
21-24 - £6.95
18-20 - £5.55
Under 18 - £4.00
To qualify for the minimum wage you must be at least school leaving age by the last Friday in June of the school year they turn 16.
Contracts are not legally binding if payments fall below the NMW or NLW.
Workers are also entitled if they meet any of the following criteria:
casual labourers, for example someone hired for one day
workers and homeworkers paid by the number of items they make
trainees, workers on probation
There are however some workers that do NOT qualify for the NMW. These are:
self-employed people - running their own business
volunteers or voluntary workers
workers on a government employment programme, such as the Work Programme
members of the armed forces
family members of the employer living in the employer’s home
non-family members living in the employer’s home who share in the work and leisure activities, are treated as one of the family and aren’t charged for meals or accommodation, for example au pairs
workers younger than school leaving age (usually 16)
higher and further education students on a work placement up to 1 year
workers on government pre-apprenticeships schemes
people on the following European Union programmes: Leonardo da Vinci, Youth in Action, Erasmus, Comenius
people working on a Jobcentre Plus Work trial for 6 weeks
people living and working in a religious community
£3.40 per hour on the following basis: when they are under 19 OR they are in their 1st year of apprenticeship.
If the apprentice is aged 19 or over AND in their second year or later then they are to receive the normal minimum wage for their age.
More detail on NMW can be found here: https://www.gov.uk/national-minimum-wage-rates.
As an employer, if you are unsure about whether you should be paying NMW or the NLW then please get in touch and we will be happy to advise you.
Author: Alex Scott-Ruddock