‘National Minimum Wage’ and ‘National Living Wage rates’
From the 1st April 2018 the National Living Wage will rise, is your business ready and aware of all the changes that will take place?
The government has aimed to reach £9p/h NLW by April 2020, and they are well on their way to achieving this.
The current 2017 rates are as follows:
25 and over – £7.50
21 to 24 – £7.05
18 to 20 – £5.60
Under 18 – £4.05
From April 2018, these rates will apply:
25 and over – £7.83 +0.38
21 to 24 – £7.38 +0.33
18 to 20 – £5.90 +0.30
Under 18 – £4.20 +0.15
All statuary pays such as maternity, paternity, adoption and shared parental pay will rise to £145.18 per week, a slight increase from the 2017 rate of £140.98.
Statuary sick pay (SSP) will rise to £92.05 per week from the previous £89.35. In addition to this the Lower Earnings Limit has risen from £113 to £116, meaning to qualify for SSP you must earn a minimum of £116 per week.
The apprentice rate is still a topic heavily discussed, from the 1st April 2018 if you are an apprentice you will receive £3.70 an hour, in 8 years this rate has increased by £1.20. To qualify for apprentice minimum wage, you must be aged under 19, or aged 19 or older and in the first year of your apprenticeship. However, if you are an apprentice you may also be entitled to the national minimum wage for your age. This is only if you are 19 or over and have completed the first year of your apprenticeship.
For example …
If you are 19 and in the first year of your apprenticeship you will be entitled to the national apprenticeship rate of £3.70.
If you are 19 and have completed your first year you will be entitled to the national living wage for your age (£5.90).