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National Minimum Wage from April 2017

By Ian Holloway, head of legislation and compliance at Cintra HR & Payroll Services

Just a quick reminder that National Minimum Wage/Living Wage rates increased on Saturday 1 April 2017 as follows:

• Workers aged 25 and over £7.50 per hour (from £7.20)
• Workers aged 21 to 24 £7.05 per hour (from £6.95)
• Workers aged 18 to 20 £5.60 per hour (from £5.55)
• Workers under 18 £4.05 per hour (from £4.00)
• Apprentices* £3.50 per hour (from £3.40)

  • For apprentices under 19 and those aged 19 or over who are in their first year. All other apprentices are entitled to rate applicable for their age.

To be specific, the statutory requirement is that the hourly rates increase for pay reference periods that start on or after 1 April. The pay reference period is the period of time for which the worker is paid – i.e. the week, the month etc. Therefore, if a weekly pay reference period starts on 27 March 2017 and ends on 2 April 2017, there is only a statutory obligation to pay at the rates in force at the start of the period (27 March). Possibly, the best guidance on what constitutes the pay reference period is on NIbusinessinfo in Northern Ireland. This website details employment-related issues that apply UK-wide (like the Minimum Wage) and ones that are Northern Ireland specific.

Therefore, there are two initial steps for employers to take to ensure that they are paying at the correct national rates:

1. Look at the start date of the pay reference period; and
2. Look at the age of the worker on that date

Posted on 3rd April 2017 by Jerome Smail

 

 

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