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New Legislation

New National Minimum Wages Rates from April 2017

Draft legislation has been published introducing new National Minimum Wage Rates with effect from 1 April 2017.

The draft legislation includes the following rates:

  • National Living Wage of £7.50 (from £7.20) for workers aged 25 and over.
  • Standard Adult Rate of £7.05 (from £6.95) for workers aged between 21 and 24.
  • Development Rate of £5.60 (from £5.55) for workers aged between 18 and 20.
  • Young Worker Rate of £4.05 (from £4.00) for workers aged under 18.
  • Apprentice Rate of £3.50 (from £3.40).
  • Accommodation Offset of £6.40 per day (from £6.00).

The rates will apply from 1 April 2017 so make sure you check your rates of pay now and revise them if necessary. And don’t forget other costs that will be affected, for example, pension and national insurance contributions.

If you do not pay the correct National Minimum Wage rate your business risks a penalty of 200% of the arrears capped at £20,000 per worker just so you know!

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